'Cheatline' turns tables on conmen
Sunday Telegraph / 16th October 2005
The number of people ringing a confidential hotline to report friends and neighbours they suspect of making false insurance claims has trebled over the past year.

The Association of British Insurers, which set up the "cheatline" five
years ago, reported the sharp increase and it claimed that these
tip-offs have saved insurers millions of pounds.

So far this year more than 300 informers have called the hotline to
snitch on friends and neighbours they believe to be involved in fraud
cases, which total £1.6 billion a year. One insurer estimates that it
has saved £1.5 million as a result of information received from the
hotline.

A third of calls relate to household insurance, mainly fictitious
burglaries or deliberate fires. Another third involve car accidents.
Some 17 per cent concern bogus personal accident claims, with one in 10
callers ratting on companies making dubious commercial claims.

Malcolm Tarling of the ABI said people were more willing to report their
neighbours because they realised that honest policyholders paid for
fraud through higher insurance premiums.

He denied that the prime motives were revenge or sour grapes. "We are
seeing a strong surge in the public's sense of civic duty," he said.

In one case a £60,000 claim for a written-off Ferrari was rejected when
someone spilled the beans that the accident had happened at a rallying
event in Europe. Another policyholder claimed that a valuable sports
trophy had been stolen. A tip-off disclosed that it was in fact hidden
in his cupboard.

If you know of anyone who has perpetrated or intends to perpetrate insurance fraud, then please use the report fraud section of this site to notify the ABI Cheatline.