Consumers 'lie on insurance policies'

About 7% people are so concerned with the price of their insurance policies that they have admitted lying while setting up their policy, a survey has shown.

Axa said one in 14 people have misled their insurer about their lifestyle habits and previous medical conditions, despite the fact that this could invalidate their policy.

Women are most likely to lie about their weight (11%), while 25% of men have failed to disclose how much alcohol they drink.

Nearly one in 10 people applying for an insurance policy, such as life insurance, critical illness cover, health insurance or income protection, have lied about smoking.

About 5% do not reveal that they have suffered from depression and about 3% keep quiet about minor back problems.

Half of people said they had been too embarrassed to reveal personal information during the application process, but 17% admitted they thought their application would be rejected if they were honest.

A further one in four people also thought they would face hefty premium increases if their insurer knew their full medical history, particularly if they had suffered from high blood pressure, high cholesterol or had taken drugs in the past.

Copyright © PA Business 2008

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