Gadget-lust fuels insurance fraud

Posted on 16 Apr 2004 at 11:23

More than five per cent of the UK population have made a fraudulent insurance claim in order to upgrade their gadgets for free, according to a survey by Directline.com.

Richard Coombe, head of Ecommerce at Direct Line, said: 'Even allowing for the fact that many people are likely to prefer to keep this type of information to themselves when asked, this survey has revealed a huge trend towards people of all ages attempting this type of insurance fraud, particularly regarding personal technology type products.... We are well aware of this practice and of course vigilant to ensure that it does not succeed.'

Many said that peer pressure to have the latest and greatest mobile phones, MP3 players and digital cameras was a major factor in prompting them to upgrade. More than half of respondents aged 25 to 34 said that the idea that a product is trendy is the main driver of their choice.

Defrauding an insurance company is also seen as a victimless crime, and the rising figures indicate that the practice is not leaving the perpetrators any pangs of guilt.

Coombe said: 'With these products increasingly widely available, there is clearly a diminishing social stigma to using any - even illegal - means to obtain the latest piece of kit, preferably ahead of friends or colleagues.'

The Welsh and those in East Anglia were the most likely to turn to insurance fraud to keep up with gadget fashions, while those in Scotland and the North East were the most honest.

Author: Matt Whipp