Royal & SunAlliance: People unaware of motor insurance scams

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Royal & SunAlliance: People unaware of motor insurance scams

Thu 11th Jan 2007

The cost of staged accidents totals more than £1.5 billion a year, according to insurer Royal & SunAlliance, but some drivers in the UK are unaware of the associated risks.

It was found that 41 per cent of British drivers have never before heard of preconceived accidents by way of scamming insurance companies.

In addition, the cost of such fraudulent activity is a rise in insurance premiums of some five per cent and as a result, Royal & SunAlliance has become the UK's first insurer to take action not to penalise honest drivers for the crimes of others.

Royal & SunAlliance's UK counter-fraud manager, John Beadle, has recently been appointed chairman of the Insurance Fraud Bureau, who intends to eradicate organised insurance scams.

He said: "Staged motor accidents are on the rise and are potentially extremely dangerous. Not only do they cost honest drivers millions of pounds each year, but they also put innocent motorists in danger. We urge people to take note of our guidelines in the event that they may become victims of this crime."

Royal & SunAlliance is a FTSE 100 company that provides insurance products to over 20 million people around the world.

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