Huge rise in ‘slip and trip’ fraud - ABI

There has been a massive rise in fraudulent ‘slip and trip’ claims in the last year, according to the Association of British Insurers (ABI).

There were almost 27,000 such claims – where a fraudster fakes injury in a place where someone else has liability – detected in 2015.

That’s up 36% on 2014 and would have cost a total of £351 million had they been successful.

The ABI says the rapid rise is partly as a result of the Government’s clampdown on fraudulent whiplash claims, and the reduction in legal costs for road traffic accident claims.

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A practical example

The ABI cited an attempted ‘slip and trip’ claim, where a chef claimed for shoulder, leg, wrist, back and teeth injuries following an alleged fall on a wet canteen floor.

However, CCTV clearly showed the fraudster deliberately staging the fall.

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The bigger picture

Elsewhere, dishonest motor claims remain the most common fraud and of highest value.

There were 70,000 attempts detected with a value of £800 million, according to the ABI.

Looking at insurance fraud overall, insurers identified more than 130,000 fake claims in 2015, or 2,500 a week.

These frauds were valued at £1.3 billion, which is down slightly (3%) on the 2014 total.

What the ABI says

Commenting on the findings, James Dalton, director of general insurance policy at ABI, said:

“Insurance cheats do not lack nerve or ingenuity, which is why there will be no let-up in the industry’s commitment to protect honest customers.

“The chances of getting caught have never been greater, and  the consequences, such as a prison sentence and difficulty in getting future insurance and other financial products, have never been more severe and long-lasting.

“Reducing fraud is part of a bigger picture of reducing unnecessary costs, so that honest customers benefit from the most competitive insurance deals.

“This is why it is important to ensure that the Government implements further proposals aimed at tackling rising personal injury claims, and that there are no further increases to the rate of Insurance Premium Tax.”