After the bubble burst in the Irish economy and after a succession of harsh budgets people have been forced into adjusting their sometimes lavish lifestyles. We have all had to cut back a little. Actually, there are still a number of people who refuse to quit their lavish way of life and will turn to crime to supplement their living. Insurance fraud is an area they tend to get caught up in. People see the rich bankers being let off the hook with golden parachute deals after messing up the country and they want their slice of the cake.
Most people think that it is only the poorer people in society that get up in insurance fraud. While this is often true there are large numbers of well off families embroiled in these illegal activities too. They wish to maintain a standard of living that they can no longer afford and in order not to ‘lose face’ with the neighbours they turn to insurance fraud to sort out their finance problems.
The Irish Insurance Federation (IIF), the representative body for insurance companies in Ireland, is continuing its effort against insurance fraud. Michael Horan, Non-Life Manager in the IIF believes “there is definitely an increase in claims in the recession”. The number of calls to Insurance Confidential, a hotline run by the IIF where people can anonymously report suspected cases of insurance fraud, had more than doubled in 2009. There were almost 700 new cases of suspected insurance fraud reported to the Insurance Confidential hotline in 2009 – up from approximately 300 in 2008. And as the recession continues, the risk of fraud will increase.
It has now been 10 years since the insurance industry began to focus strongly on preventing insurance fraud. A Database is kept by the Insurance Link and on this database are the details of repeat offenders. Insurance companies can check this database at any time. 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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