Pet insurance fraud on the rise

British insurance companies have seen a steep increase in the number of people trying to get pet insurance payouts unlawfully, The Telegraph reports.

Figures from the Association of British Insurers show there was £1,929,900 ($3 million) worth of pet insurance fraud detected last year against just £420,000 in 2009.

But the true figure is thought to be far higher and pushing up the average premium. A total of 2.3 million cats and dogs were insured last year and virtually every type of animal can be covered.

Insurers believe frauds include owners getting rid of the animal – by selling it or even killing it – then claiming a payout for early death. The animal may never have existed in the first place.

“The increase in detected pet insurance fraud is quite significant. Pet insurance fraud is costing companies more and will have an impact on other people’s premiums in the future,” says John Ellenger, pet product manager for insurer More Than.