Fight Car Insurance Fraud
Car insurance fraud is real in the UAE. If you live in the UAE and your vehicle is insured, then you should be aware of car insurance fraud. If someone tries to receive undeserved financial benefits from the car insurance company, it is considered fraud and believe it or not most people have attempted to defraud the insurance providers here in UAE. That is why we have prepared this guide so that you can learn how to shield yourself from being a victim. Let’s start by talking about the types of fraud:
Types Of Car Insurance Fraud
There are two major types, soft fraud, and hard fraud. You should learn more about them.
This is also known as opportunistic fraud. This happens when the insured has a valid reason to submit a claim to their insurance provider but exaggerates the claim resulting in bias and distortion for financial benefit. Soft fraud is very common, here are a few examples of it:
- The insured has been involved in an accident and exaggerates the extent of the car damage.
- An insured driver was involved in a collision and claim that they have suffered an injury resulting in a certain medical condition when in fact this person was suffering from this condition before the accident.
- The insured gives false information about their driving-related history when applying for car insurance, Eg: number of personal accidents incurred in the past, personal details, etc.
This is much more serious than soft fraud and it is believed only hardcore criminals can commit this type of fraud. This refers to when someone intentionally orchestrates an incident that allows him/ her to file a claim. Here are a few examples of hard fraud:
- Two or more insured drivers stage an accident by colliding into each other thereby filing for claims.
- Two drivers intentionally target an innocent driver provoking a collision. This is how they do it, one will be in front slowing down, while the other in the back tailgate leaving this innocent driver in the middle with no option but to clash with one of them.
- An insured driver strips his vehicle of valuable assets like seats and audio system and report it as stolen.
How To Protect Yourself From Insurance Fraud
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. If anyone is tailgating you, keep your attention on the road. Don’t be distracted by the car behind you. They might be targeting you for car insurance fraud. Always check for functioning brake lights. Criminals usually have non-functioning brake lights, they use that as an excuse to run into you.
If you deem anything suspicious about the accident that you were involved in, maybe you think the crash was deliberate, quickly inform your car insurance provider about it. Give full details to the police and take photographs of the damage. Also, get full details of the other party.
Always be truthful when submitting a claim. Make sure that when you buy a car insurance policy it is from a reputable car insurance company. You don’t wish to be the victim of insurance fraud only to find out that you are not covered. There are plenty of ghost brokers who render deals that are too good to be true. Be wary of such offers.
Originally published Jul 16, 2019 12:40:31 PM, updated Jun 05, 2021