Page 253 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

public or internal i.e. insurers, agents and intermediaries.
More often it is a nexus between both groups that
perpetrate fraud. The fraud can range from
misrepresentation at the time of taking insurance. e.g.
renewal of a policy much after its expiry dates.

Here it has often been observed that the vehicle is
already damaged or stolen when the proposer seeks
insurance. Insurers have tried to counteract such cases
by insisting on an inspection of the vehicle before
acceptance for insurance.

Another type of fraud results after the insurance has
been taken. The same vehicle may be insured with two
or more insurers and claims are reported. Here is a
nexus between repairers and claimants. This type of
fraud is much more difficult to detect, in the absence of
a central repository for reporting all accidents.

The recent trend to earmark authorized repairers by
insurers has helped in some small way. However the
commercial vehicle field is still wide open to such
frauds. The black-listing of such repairers is one of
the ways of reducing such attempts. Regular visit to
such doubtful repairers may help in preventing such
frauds and disseminating such information to other
insurers.

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