People making false insurance claims are on the rise.

Insurance & Financial Services Ombudsman, Karen Stevens said they have investigated a multitude of cases involving varying degrees of dishonesty.

She said the consequences include claims being declined, cancelled policies and names registered on the Insurance Claims Register.

Stevens said this can affect any future insurance which, in turn, can affect home or business ownership.

"It seems to be that people don't understand that they can very badly compromise the whole claim if they tell a lie about the cost of something or the number of items they're claiming"

Stevens also said often people do not appreciate that the consequences of lying can be dire.

"They will also find that they have the insurance claims register recording the fact that they have made a dishonest claim. That can have significant and lasting effects for them when it comes to getting any sort of insurance in the future".