With Pounds 50 Million Being Lost to Travel Insurance Cheats Top Firms Launch a Crackdown on Fraud in Sun; Sob Stories of Holiday Thefts May Find Sympathy from Some Quarters, but Travel Insurers Aren't Likely to Be Taken in. ADRIENNE McGILL Reports on the Crack Down on Dodgey Insurance Claims

The News Letter (Belfast, Northern Ireland), June 12, 2001 | Go to article overview

With Pounds 50 Million Being Lost to Travel Insurance Cheats Top Firms Launch a Crackdown on Fraud in Sun; Sob Stories of Holiday Thefts May Find Sympathy from Some Quarters, but Travel Insurers Aren't Likely to Be Taken in. ADRIENNE McGILL Reports on the Crack Down on Dodgey Insurance Claims


Byline: Adrienne McGill

LYING in the sun can become a full time occupation for some holiday makers over the summer months - but we're not talking about the supine position here.

If every travel insurance claim for a lost Rolex were genuine, it would be impossible to walk on a Mediterranean beach without crunching a dozen or so expensive watches underfoot.

But "lying" to an insurance company about a stolen or lost item is becoming part of the holiday experience for many Britons.

No one, it would appear, ever buys a cheap watch, ordinary jeans or a basic camera.

No other class of insurance sees policyholders using as much ingenuity in their attempts to secure a payout.

Take the man who claimed for the loss of his Cartier watch which turned out to be a cheap imitation bought for just pounds 3.00.

In another case, a scrap metal merchant claimed pounds 6,000 for Cartier and Rolex watches - on four separate policies.

The insurer spotted the multiple claim (which is itself illegal) and dispatched the police to his home - where they also happened to find a stolen car in the drive.

A skier scuppered his own plans to defraud his insurer by discussing his intentions on the coach taking him to the resort. Unfortunately for him, an employee of his insurance company was sitting just in front, overheard and was able to alert his colleagues back at base.

However, fraudulent claims cost travel insurers pounds 50 million every year and innocent holiday makers are having to pick up the cost of those intent on making false claims.

Premiums are based on the amount of money that the insurers pay out. So the more they have to stump up to meet claims, the higher the premiums charged.

Insurance companies are now cracking down on the cheats and a lot more information is being passed between companies so that they can spot individuals who make regular claims.

But making a claim on an insurance policy is becoming increasingly difficult as insurance companies become ever more zealous in chasing fraudsters.

However, consumer bodies and other informed observers fear that this crackdown on crime is impinging on the rights of genuine claimants as well as those intent on defrauding insurers.

Some have even voiced suspicions that insurers may also be blocking legitimate claims simply to reduce costs and boost their profits.

The Association of British Insurers admits that policyholders have "more hoops to jump through" nowadays if they want to make a claim.

It stands to reason, however, that the more rigorous and arduous this process becomes, the more likely it is that genuine claimants will suffer unfairly.

Anyone who has ever tried to claim a significant amount of money on their household, travel, or motor insurance policy will probably have found it a disheartening experience.

Not only are there endless forms to complete, but the chances are they will also have been visited by a representative of a firm of loss adjusters, appointed by the insurance company to "manage"the claim.

A spokeswoman for the ABI adds: "In the past, insurers took more on trust. But now they want documentation and proof before they start paying claims. If this reduces fraudulent claims, it will obviously reduce the cost of insurance for everyone."

In a bid to help reduce the cost of fraud to the Insurance Industry - estimated at around pounds 650 million per year - Royal & SunAlliance is expanding its network of fraud investigators and piloting new investigation methods.

The Company is the first insurer to set up Fraud Units in the UK (based in Peterborough and Leeds) with support from field-based investigators. By the end of the year, it is hoped the 75-strong team will increase to 90.

Royal & SunAlliance is also piloting a SCORE (Scientific Customer Orientated Risk Evaluation) process, in partnership with Crawfords which further develops the use of the telephone as a fraud investigation tool.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

With Pounds 50 Million Being Lost to Travel Insurance Cheats Top Firms Launch a Crackdown on Fraud in Sun; Sob Stories of Holiday Thefts May Find Sympathy from Some Quarters, but Travel Insurers Aren't Likely to Be Taken in. ADRIENNE McGILL Reports on the Crack Down on Dodgey Insurance Claims
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.