Personal debt encourages insurance fraud

People with financial problems are trying to defraud insurance companies to help ease their debt, new data has shown.

The survey conducted by LV= shows that nearly half of solicitors have seen fake claims surge since the recession began.

Nearly nine in ten (89 per cent) believe that the ‘no win, no fee’ arrangement has been the root cause of the rise.

Nearly half (46 per cent) of all fraudulent claims are for whiplash, whilst post-traumatic stress (21 per cent) and strained muscles (10 per cent) are also common.

LV= reveal that conversely, these fraudulent claims could actually require more people to seek help with finances, as they drive up the cost of insurance premiums by a third.

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