June 11, 2009

Motorists Hiding Convictions On Insurance

Motor insurers are planning a crackdown on drivers who hide their convictions when they apply for cover.
As many as one in five motorists is tempted to lie on their insurance forms to get a cheaper deal, according to the Association of British Insurers (ABI).

Faced with rising amounts of nondisclosure, particularly of speeding and other motoring offences, the ABI wants insurers to gain access to motorists’ driving histories when they apply for insurance.
It is talking to the DVLA to see how it can gain access to its databases. Currently insurers see information on convictions only when a claim is made.

Malcolm Tarling, at the ABI, says: ‘ Fraudulent motor claims are on the rise and it costs all policyholders around £30 to £40 extra on their premium to cover this.

‘We are talking to the DVLA about consent and data protection issues to see if we can get consent at point of sale.’

Motor fraud had risen to £360million in 2008 from £280million in 2007. Motorists who lie on their proposal form are often found out only if making a claim, when insurers ask them for written consent to check the details held by the DVLA.

Insurers would like to see motorists give electronic consent when the policy is taken out – 70 per cent of cover is bought online. Written applications would also then ask for permission at point of sale.


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