Pet insurance fraud rises fourfold

Nothing, it seems, is immune to the impact of the economic slowdown: jobs, homes, businesses – now even the family pet. Cats, dogs and horses are facing deliberate injury – or even paying the ultimate price – as owners seek payouts from pet insurance policies.

Fake claims on pet policies, which range from injuries inflicted by owners to claims related to non-existent pets, are now the fastest growing area of insurance fraud. Figures from the Association of British Insurers show that detected pet insurance fraud soared to nearly £2m last year, from £420,000 the year before. But the true extent of the fraud, counting all the false claims paid out, is thought to be much higher and is pushing up the cost of policies, which now average £220 a year.