Insurers stung by EUR 1 billion fraud

22nd September 2005, Comments 0 comments

22 September 2005, AMSTERDAM — Dutch insurance companies are more often the victim of fraud than previously thought.

22 September 2005

AMSTERDAM — Dutch insurance companies are more often the victim of fraud than previously thought.

New research by the union of insurers (VvV) suggests that about EUR 938 million was paid out to cover fraudulent claims last year. Until now it was thought the sector lost EUR 500 million annually due to fraud.

About 20 percent of insurance claims are dubious. Private individuals rather than professional criminals are responsible for EUR 633 million of the false claims - the  majority relating to car insurance.

The chance of being caught is just 1 percent. But insurance companies manage to recover 10 percent of the fraudulent payments.

The VvV said on Thursday that it is going to hold discussions with justice officials about taking a tougher line with fraudsters.

The insurers' group has been encouraged by a system tested in Zwolle in which people guilty of defrauding small amounts were sent a giro payment form by the state's debt collector Centraal Justitieel Incassobureau.

Repayment of the money was accepted as settlement of the case and no further legal action was taken. The VvV said this system could be introduced in the rest of the Netherlands.

[Copyright Expatica News + ANP 2005]

Subject: Dutch news

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