MPs Say Insurers Invite Fraud Claims

MPs Say Insurers Invite Fraud Claims.

In the firing line by MPs this time is motor insurance being accused with encouraging fraud and exaggeration in accident claims.

The Transport Select Committee has spoken out against the car insurance industry after it was found that the cost of car insurance has been inflated by whiplash claims.

The car insurance industry have denied encouraging fraud, but agreed that more needed to be done to clean up the claims process. MPs have said that insurance companies were accepting claims without question or cross examination.

Comment

The whole financial industry and claims industry is to blame.

Liability insurers take the financial loss with the UK becoming litigation Britain.  Claims firms and many lawyers make their living by targetting compensation claims.  Motor insurance is no different.