Totalling nearly 20,000 fake liability claims, the ABI have highlighted the worrying trend and how it affects businesses and business owners alike. If found negligent, organisations can face huge fines and even worse sanctions, which can spell the end for smaller ventures.
One of the biggest cases of insurance liability fraud occurred in late 2014 when a Bradford man attempted to claim £10,000 in damages from his local supermarket. Citing injuries to his head and body, CCTV later showed that the man had deliberately injured himself. He was given a 10 month suspended sentence for fraud.
Elsewhere, a Tyneside man attempted to claim insurance after supposedly suffering a broken ankle when getting his ankle trapped in a drain. After being outed as a fraud in a YouTube video which showed him being fully fit, the individual was convicted of fraud and sentenced to200 hours of community service.
These are just two of the cases which have led to the nationwide increase and contributed towards the insurance fraud “industry” being worth an estimated £1.32bn. Overall, insurance fraud grew by 9% over the course of 2014.
James Dalton of the ABI said when the figures were released: “As well as the possibility of serving a custodial sentence, they will find it difficult to obtain vital financial services such as mortgages and loans, future job prospects are likely to be adversely impacted, and family relationships suffer.”
Understanding when to spot the signs of fraud should be key for most businesses, especially in an age where “No Win, No Fee” is a mantra for many. With all of the injury lawyer adverts broadcasted on televisions daily and sponsored posts popping up in people’s News Feedsand Twitter timelines, claiming liability insurance (whether fraudulent or not) is now easier than ever, which could spell trouble for your business.
To help prevent fraudulent insurance, whether it’s your employees or civilians that are liable, it’s important to ensure that your organisation is as safe as possible. Safety Media offer a wide range of different health and safety e-Learning solutions in our course library, including a specialist course on Slips, Trips and Falls.
Find out more about how our products can help you safeguard against fraudulent insurance liability claims by calling us on +44 (0)1745 535000 or emailing firstname.lastname@example.org.