Crash for cash incidents on the rise
Flint Insurance says that in some cases insurers have seen a 30% increase in suspicious motor accident cases during the past year. Fraudsters are looking to involve company vehicles because of the likelihood a claim will be paid out quicker than in a private case.
A spokesperson for Flint Insurance said: 'Motor fleet insurance policies are calculated using many parameters, but by far the biggest determining factor behind all premium calculations are the previous claims under the policy. All fleet operators would know and have seen a claims experience document, which insurers will ask to see before providing any form of quotation.
'This allows underwriters to look at the profile of the risk, frequency and severity of all claims, including claims which are staged or exaggerated by injury, hire or fraudulent activity. What all parties need to understand is that the basic premise behind insurance, the costs of the few spread over the heads of the many, means that all businesses and fleet owners and individuals are paying the price for this fraudulent activity.'
Flint Insurance says the only way to deal with these types of incidents and to distinguish genuine claims from fraudulent ones is to increase the level of information collected and the speed of the initial reporting when the claim occurs – especially in a situation where the claim is considered the fault of the insured driver.
The firm is encouraging all drivers to report accidents at the scene, and to use readily available technology such as mobile phone cameras to record information.For more of the latest industry news, click here.