Every time a fraudulent claim is settled by a car insurance company, motor insurance rates go up for the honest driver.
To this end, car insurance companies constantly strive to recognise the signs of deceit and a new list of hints and tips for spotting false claims has been compiled by industry experts.
A spokesperson from Absolute, the strategic planning company who researched the list, said, "Brokers have the closest relationship with the clients, and it is important to raise awareness in order to strengthen fraud detection and management.
"Fraud detection has tripled because the industry has worked together: insurers have teamed up and established initiatives such as the Insurance Fraud Bureau, and brokers should be involved in that collaborative process."
List of hints for early fraud detection includes:
- The claimant having a history of cancelled policies or similar claims
- Vague details by the claimant on the circumstances of the incident
- Inability or reluctance to provide the vehicle for inspection
- Unwillingness by the insured to answer direct questioning regarding the incident
- Non-involvement of the police in circumstances where they would usually have been contacted
- The incident or loss occurred shortly after the policy start date or close to the expiry date
- Recent history of a bad credit rating; such as arrears or late payments on loans, etc
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The spokesperson said that this list of hints and tips would be constantly scrutinised and was not exhaustive. New fraud scams occur with great regularity and the car insurance industry will need vigilance and effective communication to combat the culprits.
A spokesperson for online car insurer, Hoot, said, "It is the responsibility of each car insurance company to implement these guidelines into their handling of each claim. This way we can combat the fraudsters."
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