The insurance industry is "more aware" and "more alert" when it comes to preventing fraud, one industry body has said.
Graeme Trudgill, technical and corporate affairs executive of the British Insurance Brokers' Association (BIBA) said: "If it's found out that someone is being fraudulent - and they will be found out because you have to really look into these claims - then questions will be asked."
He went on to say that anyone caught perpetrating an insurance fraud would have their fate decided by a court of the Financial Ombudsman.
Mr Trudgill said that, as around £1 billion was paid out in fraudulent claims each year, companies were forced to put up everyone else's insurance premiums.
A study conducted by uSwitch in July 2007 revealed that 2.5 million people could find that their car insurance is invalid as they had withheld vital information from their insurance.
More that 1.5 million of those asked had lied about basic details including their age and address.




