There is found an increase of around 17% in the number of consumers exaggerating home insurance claims where the exaggeration per claim is found to be around £607. It has been found that more and more number of people has started exaggerating their home insurance claims.
AXA insurers, UK’s top home insurers, confirmed the tens of thousands customers exaggerating insurance claims in the past few years. According to the data from AXA Company these exaggerated claims added a considerable amount of £13 to every policy handled last year.
London, a considerable place for property investment, is at the top of the list consisting of the places where the exaggeration is found to be increasing sharply. Most of the consumers do not consider such claims as dishonesty. According to a survey report merely 45% of people consider over rating the claim as fraudulence. Survey revealed that:
- Around 58% of consumers not consider the screening of their previous claims as dishonesty.
- Saying the house was properly shut and locked at the time of theft, although it wasn’t, is also considered fair by 56% of consumers.
- 48% consumers considered submitting someone else’s receipt, to make a claim, as a fair act.
- Deliberately damaging home appliances to make a claim is not considered as a dishonest act by 48% of the consumers.
- Men are found more likely to exaggerate a claim in comparison to women.
Research declared that, if considered the statistics, about 12 percent of people would consider exaggerating the claim now than three years back. Property insurance is also becoming a source of profit in the property investment business.
In these time of tight money, many cases are coming forward of exaggerated insurance claims. AXA, insurance company, set up a team last year to reduce this fraud in the insurance claims. The consumer caught doing fraud in insurance claims will not be able to get claim at all in addition to losing his chance of getting insurance in future. Other measures are also been taken to cope with this situation.