Fraudster uncovered by insurance database

The national database, which was set up in January this year, contains details of all vehicles that have been written off after an accident or have been reported stolen.

t aims to crack down on fraudsters by identifying people who insure their vehicle with several different firms at the same time, and then make multiple claims following an accident or a reported theft.

The first fraud to be uncovered by the database involved a policyholder who claimed his car had been stolen and recovered, but had been stripped and burnt out. However, the database revealed the person had made exactly the same claim on the same vehicle six years ago.

According to research carried out on behalf of the ABI, just over 60% of claims staff had already identified cases requiring further investigation thanks to the system.

Miles Keeble, chair of the ABI's motor insurance anti-fraud committee, said: "The database is clearly doing its job well, helping insurers to deter and detect insurance fraud. In a short space of time, the system is already providing real benefits for insurers and honest policyholders."

The ABI estimates that motor and household insurance fraud costs the industry more than £1 billion a year.