Industry News from Yes Insurance

People who lie on their insurance claims - whether it is car, van or home insurance - are making a stupid move, according to a consumer finance expert.

David Kuo, head of personal finance at Fool.co.uk, remarked that companies are beginning to become more aware of those breaking the law in such manner.

Mr Kuo made the comment after research from the Association of British Insurers found that 11 per cent of UK adults committed some form of insurance fraud between March 2006 and March 2007.

In addition, the body added that more than one million claims made every year involve opportunistic fraud.

"These days the insurance companies are very shrewd and they can detect when somebody is being true on their claims forms," said Mr Kuo.

Fool.co.uk earlier this month revealed that the amount of insurance cover received is unknown to one in three people.