As Ireland’s recession forces most people to adjust to their changed circumstances, a growing trend in insurance fraud indicates that some are finding other ways to ’supplement’ their lifestyles. With the country’s top bankers getting to keep their million euro bonus many may feel that they too are entitled to their piece of the action.
Although it is often assumed that people commit fraud for personal gain, the reality can be more complex. Maintaining personal reputation or the avoidance of loss can be strong motivators. As people lose their jobs, the pressure to commit fraud to maintain a lifestyle beyond their reduced means increases.
The Irish Insurance Federation is a representative body for insurance companies. They have identified the growing trend of insurance fraud and are battling hard to stop it. Michael Horan from the IIF states “there is definitely an increase in claims in the recession”. Internal statistics show that the number of tip-offs to insurance fraud claims via a confidential phone line have increased by over 50% in the year 2009 when compared to 2008. These figures clearly highlight that there is something wrong. Numbers do not surge like this without a reason. The reason in this case is the recession. If the recession deepens then the insurance fraud levels are also likely to increase.
The Irish Insurance Federation put a strong focus on detecting and preventing fraud over 10 years ago. Part of this plan of action involved the creation of a database of high risk claimants. Their details were stored on a database which could be checked by insurance companies. Nick Starling of the ABI says ‘Whether claiming against a third party for bogus personal injury or on their own insurance, fraudsters are more likely than ever to get caught, leading to more expensive and harder-to-obtain insurance and credit and the possibility of a criminal record’.
The chances of you and your family falling into financial difficulty has multiplied over the last few years. With tougher budgets to come things are likely to get worse. To many, insurance fraud will be the only solution to maintaining a lavish lifestyle. The insurance companies are aware of this situation and are battling back. Insurance fraud hurts everyone and insurance companies do not want these levels rising.
AXA take insurance fraud seriously and pass on the benefits to our customers. Axa car insurance Ireland provide competitive car insurance quotes and van insurance quotes.
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