How To Avoid Auto Insurance Fraud03 Apr, 2018
There are plenty of ghost brokers out there who offer deals that are too good to be true. If someone tries to receive undeserved financial benefits from a car insurance company, it is considered fraud
There are plenty of ghost brokers out there who offer deals that are too good to be true.
If someone tries to receive undeserved financial benefits from a car insurance company, it is considered fraud
Source: Khaleej Times
Car insurance fraud is a reality in the UAE that all drivers and car owners should be aware of. If someone tries to receive undeserved financial benefits from a car insurance company, it is considered fraud. We have prepared this guide for women on auto insurance frauds so you can learn to protect yourself from being a victim.
Types of auto insurance frauds
This is also known as opportunistic fraud. Someone has a valid reason to submit a claim to their Dubai car insurance company, but distorts the claim for financial benefit. Soft fraud is the most common insurance fraud and can also be found in the healthcare, travel, pet and other insurance industries.
- Someone is in a car accident and exaggerates the damage to their car.
- The accident victim pretends that the injuries they received were worse than they actually were.
- Someone is in a car collision and claims that it caused a medical condition that was already present.
- Someone lies about their details (number of previous accidents, severity of accidents, personal details, etc.) when submitting a car insurance application.
This is a more serious offense and is committed by organised criminal gangs. Hard fraud is when someone intentionally causes an incident that allows him to file a claim.
- Two criminals target an innocent driver and provoke a collision. One could be driving in front of the target, while the other drives behind. The driver in the front slows down, while the other tailgates, not letting the victim slow down and causing a crash.
- A car owners sells his car to a body shop to be cut up for parts and then reports the car stolen. The body shop is in on the scam.
- A car owner strips his car of valuables such as the seats and audio system and then reports these items as stolen.
- Two or more people stage an accident by crashing their vehicles into each other's and then file for claims.
The cost of insurance fraud
While soft fraud might not seem like such a big deal, but since it drives up the cost that insurance companies must pay, it also drives up the car insurance premiums that companies charge their policyholders. Same goes for hard frauds. Insurance companies the world over lose billions in fraudulent claims that get passed on to their customers.
And it is not just the premiums that get affected. If you are a victim of a car insurance fraud, you might get seriously injured and your driving record will no longer be spotless. Car accidents can also be fatal. Moreover, valuable time of anyone involved gets wasted such as the law enforcement, emergency services and anyone who was driving on the same route.
How to protect yourself
Report: If you think an accident you were involved in was caused deliberately, inform your car insurance company about it. Give full details to the police and take photographs of the damage. Also, get full details of the other party.
Maintain your distance: Never drive too close to the back of another car. You should be able to see the tarmac behind the rear wheel of the car in front of you.
Be wary: If anyone is tailgating you, keep your attention on the road in front of you. Don't be distracted by the car behind you. You might be being targeted for car insurance fraud. Check for functioning brake lights: Criminals might have non-functioning brake lights. If the car in front of you is slowing down and the brake lights aren't working, give it plenty of room. Be honest: Always be honest when submitting a claim.
Always make sure that you purchase a car insurance policy through a reputable car insurance broker in Dubai. You don't want to be the victim of car insurance fraud only to find out that you aren't covered. There are plenty of ghost brokers out there who offer deals that are too good to be true. Be wary of such offers.
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