First it was spurious claims for whiplash and other injuries, then it was “crash for cash”. Now a new type of fraud is affecting the insurance industry – pet scams.
Dishonest claims on animal policies almost quadrupled last year, making it the fasting growing area of insurance crime. Figures from the Association of British Insurers show there was £1,929,900 worth of pet insurance fraud detected last year – up from just £420,000 in 2009.
Insurers believe frauds include owners getting rid of the animal – by selling it or even killing it – then claiming a payout for early death. The animal may never have existed in the first place.