Exposed insurance fraud claims 'worth £1.3bn'

The combined cost of fraudulent insurance claims hit a record £1.3 billion last year, industry watchdog, the Association of British Insurers (ABI) found. Fraud is estimated to add up to £90 to the cost of everyone's general insurance policies.

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Public see fraud as 'stealing towels from a hotel room'

Most of the public see insurance fraud as wrong as "stealing towels from a hotel room," an industry chief told Good Morning Britain.

Simon Douglas, director of AA Insurance said there had been an increase in people phoning the industry cheat line to report fraudulent claims.

"They think it may be a victimless crime, but in fact it is not. Just motor insurance fraud alone is probably costing £50 on everybody's premium."

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