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Car insurance firms encourage claims, MPs say (from the BBC website)

In-car cameras are the solution

Police are considering setting up a new separate unit, to tackle fraudulent insurance claims. They are concerned that the increase in these claims is still putting up the cost of insurance by 40pound a year and there is a dramatic increase if false injury claims.

"The committee has failed to recognise that the main cause of the recent increases in motor insurance premiums is ever-increasing personal claims and spiralling legal costs," said Nick Starling from the Association of British Insurers (ABI).

The association said the rise in legal costs had added 40pound a year to average motor premiums.

The committee said insurers must do more to tackle fraudulent injury claims, which were also driving up the cost of motor insurance. It wants a dedicated police unit, paid for by insurers, to tackle the issue.

Simon Douglas, director of AA Insurance, welcomed the idea of a special police unit.

"With insurer control, such a unit could very quickly pay for itself. Fraud, particularly false personal injury claims, is in my view the biggest driver of premium increases," he said.

Taken from the article below

http://www.bbc.co.uk/news/business-12703857

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