Low levels of fraud in life insurance, says ABI

There is a very low incidence rate of fraud relating to life insurance policies, according to the Association of British Insurers (ABI).

In wake of the high-profile case of missing canoeist John Darwin and his wife Anne, ABI spokesman Jonathon French stressed that such circumstances were not normal.

He said: "We haven’t made any specific comments about this case but it is safe to say that it is a very unusual set of circumstances.

"Life insurance companies have a number of checks and balances in place to minimise fraud and there are very low levels of fraud in the life insurance arena".

He advised those who may need to make a claim: "If you have proof of death, by way of a death certificate then you can make the claim immediately".

ABI statistics show that 40 per cent of households have life insurance.

The life insurance industry is thought to have paid out an estimated £17 million per day in death benefits.