Insurance - Insurance fraud 'is being cracked down on' - 28/01/2008

The case of the 'mystery canoeist' John Darwin, who has been charged with fraud by police following his faked disappearance, has brought the issue of false insurance claims into the public eye.

Mr Darwin, from Hartlepool, has been alleged to have enjoyed the proceeds of a five-figure life insurance payout, claimed by his wife in the aftermath of his 'death'.

However, according to the British Insurance Brokers' Association (Biba), the industry is getting better and better at spotting insurance fraud.

Indeed, according to the Insurance Fraud Bureau (IFB), fraud exposure from firms was up 50 per cent from 2004 to 2005 - the latest years for which figures are available.

Graeme Trudgill, technical and corporate affairs executive of Biba, said: "The insurance industry pays out over £1 billion a year in fraudulent claims and it is a big worry - this is why the IFB has been set up, to help protect the innocent customers."

He added: "I think that we are becoming more aware, more alert, and we'll be more able to respond to it and the canoeists of this world going forth."
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