The Association of British Insurers (ABI) has agreed funding for a project designed to eradicate fraud in the motor insurance world. It will involve a system whereby the drivers will be asked for their driving licence number when applying for their insurance.
At the moment insurers have to rely on utmost good faith from their clients who unfortunately may not always be totally truthful when it comes to any penalty points and more importantly if they have a licence at all!!
According to ABI & DVLA research…
- 16% of drivers lied on their motor insurance application form in 2010
- An estimated 42,000 disqualified drivers suspected of taking out insurance
When drivers underestimate their driving history when buying motor insurance money is being lost. Motor Insurers’ Bureau chief executive Ashton West said “The consumer loses out, and they are ultimately picking up the bill for the claims cost of those people that are under-declaring”.
Expectations at the moment predict that the database will launch in early 2014.
SOURCE: Insurance Times 5 July 2012