Austerity Brings about Desperate Times and Desperate Acts

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Two penniless Spanish men chopped off their own hands and tried to claim the insurance payout as accidents. Unfortunately for them, both have been exposed as fraudsters because they performed the amputations too well to be accidents. Both cases come amid a steep rise in the number of false insurance claims that have been revealed since Spain plunged into recession in 2008.

Questions:
1. What per cent increase in the past five years has Spain seen in false insurance claims?
2. The article claims that even criminal gangs are getting in the act. How are they adding to the false insurance claims?
3. What is the jobless rate in Spain and why is it such a factor regarding these claims? Discuss by incorporating the construction industry into your answer.

Source:
Blake, Matt. (2013) “Two Spanish men chopped off their own HANDS in £2million insurance scams – but get found out because they did it too well,” Daily Mail, April 26 (Retrievable online at http://www.dailymail.co.uk/news/article-2315346/Two-Spanish-men-chopped-HANDS-2million-insurance-scams–did-well.html)

Complete News video. Spain’s unemployment rate reaches Record High (Retrievable online at http://www.youtube.com/watch?v=5kqbuvz-PoM)