BRUSSELS, Sept. 22(Xinhuanet)-- A research showed that Dutch insurance companies lose 500 million euros(610 million US dollars)annually due to fraud, Dutch news agency ANP reported on Thursday.

The research by the union of insurers(VvV) suggests that about 938 million was paid out to cover fraudulent claims last year.

The VvV believed that about 20 percent of insurance claims are dubious. Private individuals rather than professional criminals are responsible for 633 million euros of the false claims- the majority relating to car insurance.

The chance of being caught is just one percent. But insurance companies manage to recover only 10 percent of the fraudulent payments.

The VvV said that it is going to hold discussions with justice officials about taking a tougher line with fraudsters.

The insurers' group has been encouraged by a system tested in Zwolle in which people guilty of defrauding small amounts were sent a payment form by the state's debt collector Centraal Justitieel Incassobureau.

Repayment of the money was accepted as settlement of the case and no further legal action was taken. The VvV said this system could be introduced in the rest of the Netherlands. Enditem