Insurance fraud costs €1.2bn a year in Spain

Six out of every 100 claims are false, with the average bogus claim totalling €1,124, says industry study

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Most fraudulent claims are for damages that did not occur in the accident, though some cases involve accidents that were staged altogether (Photo: CDSN)

By Tom Cain

INSURANCE company Línea Directa has released the third edition of its car insurance fraud barometer which shows that six out of every 100 claims that are made are fraudulent.

The barometer shows that organised gangs are simulating accidents in order to claim compensation for injuries while individuals try to claim excessive amounts for minor repairs.

Insurance companies say that the number of fraudulent claims being made in Málaga province stands at 6.3% of all claims, elevating it into the top flight of provinces (in eighth position) where this type of fraud is concerned, with Cuenca, Murcia and Jaén holding the top three places.

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