How many people in the UK paying for and obtaining car insurance are not in reality , insured ?

Question

Many people fill in their insurance details incorrectly, either deliberately or otherwise brokers accept same as do the insurance company collecting the cash, knowing full well that they will not pay out in the event of a major claim. How does the govt look at this ?

Answer 1

True, true but why should it be a govt problem? Lying does work well when getting a credit card or a mortgage or a job so people are used to it! Heck I even had a girl that told me sho was a virgin! yeah right :)

The brits are a bunch of liers but are a good bunch. Freer than the yanks will ever be.

Answer 2

true, and that's why it cannot be classed as fraud.

You can't commit fraud against yourself.

The govt could only be asked to regulate this under a communist regime which the UK isn't.

Answer 3

If you deliberately misstate your details on an insurance proposal form (and you have plenty of time to check the details when the policy is issued) you are committing a crime. The govt takes the view that they will then take you to court and punish you through the judicial system for ‘obtaining goods or services through deception”. There’s really not much else they can do, except run a compensation scheme for those who are hit by uninsured drivers, which they do (see below). Personally having worked in insurance markets in several countries over the years, I think the UK govt is one of the most active in this area. It never ceases to amaze me the number of countries where basic motor insurance isn’t even compulsory.

The idea that insurers knowingly accept false details (or don’t care) is simply incorrect. There is absolutely no mileage in them doing so and a lot of reasons why they wouldn’t.

If you are hit by a car driven by someone who has had their policy cancelled because of a deliberate misstatement you can then claim from the uninsured driver’s compensation scheme administered by the Motor Insurers Bureau (MIB). Since the MIB is funded by Insurers they still end up paying the cost one way or another.

There is an incentive for insurers to check details of anyone applying for insurance since if the ‘fraud’ is never discovered, they lose money, they want to check you’re paying the premium you should, not any less. There are also money laundering and other laws to comply with. You might be surprised how much checking is actually done. It’s mainly done behind the scenes, but it is there.

Answer 4

that's fraud, and it's punishable under law.

Answer 5

well ive done mine as accurately as possible, but if people do in wrongly on purpose, then i suppose thats fraud isnt it??