I recently had the privilege of attending the year overview of the Insurance Crime Bureau. This review revealed what has been done and still needs to be done to curb the crime of insurance fraud in South Africa!
With many crimes it is easy for us to shrug the shoulders and not to be involved. If someone commits tax fraud we might believe that this is merely a matter between the accused and the prosecution or tax authorities. With insurance fraud the crime is unfortunately having an impact on our own pockets as well – and we feel the effects that this has on our increasing insurance premiums!
Fraudsters are the main reason car insurance premiums are believed to soar even more, according to insurers. These fast escalating car insurance premiums are often pricing young vehicle owners out of the market and are encouraging more people to risk driving without insurance, one of the key reasons that premiums are rising so fast.
Telling lies, false and fraudulent claims
Research in the UK has revealed that more people seem prepared to lie to insurers. According to some researchers a third of motorists would cheat their car insurer by making a fraudulent claim to ensure a successful car insurance payout, with younger motorists the most likely to lie.
We have previously emphasized the importance for careful attention to detail – and to focus on the terms and conditions of car insurance. Only this attention to detail will ensure that vehicle owners understand their rights and obligations and are able to avoid the risks of submitting fraudulent claims.
Tackling fraud requires Public Private Partnerships
The South African Insurance Crime Bureau is focused on addressing organised fraud and crime in the short term insurance industry, as well as to identify repeat offenders and fraudsters that target multiple insurance companies.
For the SAICB to achieve its aim of reducing fraud and crime within the financial industry, it needs to work very closely with the policing and justice entities in South Africa, and to this end, has spent a huge amount of time and resources working with the SAPS, NPA and the Hawks and building the strong relationships that will help them with their mission and vision for the industry.
This close working relationship has resulted in several projects being identified and implemented to assist SAPS in achieving their renewed commitment to tackle crime in all its guises, while assisting the industry in addressing the crime and fraud committed against it.
Reporting Car Insurance Fraud
The best you can do for family and friends is to assist in curbing escalating car insurance premiums. We all have a responsibility to do more than merely shrug the shoulders….Report insurance fraud!!