Insurance Fraud in Dubai – we are all paying for it

Image source: michaeldiazjr.com

Image source: michaeldiazjr.com

If you live in Dubai and have insurance on your vehicles right now, it is a good chance that part of the premium you are paying is due the Company increasing their rates due to fraud.

We all pay for fraud through the insurance premiums, you can be sure the number is in the millions. The act of fraud is a criminal offence so you have to wonder how so many get away with it.

If you are participating in any type of insurance fraud:

  • Obviously your claim will be denied, the policy will be cancelled, and your license will be revoked. Because fraud falls under the Federal Government, high Authorities in some Countries, you could go to jail for 10 years depending on the extent of crime.
  • When the time comes that you are able to get your license back and drive, because insurance is mandatory, you will have to buy insurance. The Company will only offer you liability for the other person and the rate will be astronomical.
  • The most common type of auto fraud would include lying about the entire loss, staging accidents, entering claims on existing damage.

How Can What Can People Do to Help Fight Fraud?

  • Insurance company adjusters, and different levels of law enforcement, are making great strides in exposing insurance fraud rings, but they need help from the consumers to get the problem under control.
  • Report all suspicious activity whether it is in a parking lot, on the road, a hit and run, numerous criminal activity on your street like break ins, vandalism
  • Staged accidents, get as much information you can. In fact, take a picture with your phone of the license plate, car, person, everything you can.
  • Check over the claims form to make sure the information is all there and correct. Many cities now have collision reporting centers. Send you adjuster the pictures.
  • Do not ever sign a blank claims form or any type of legal form until you have spoken to your own adjuster or lawyers.

Did you Know?

  • If you lend your vehicle to someone and they have an accident, they will be liable for the accident, but so would you, being the registered owners. Make sure you have known the person you are lending your car to for quite awhile. A staging accident could be done with your own vehicle, and you wouldn’t even know it.
  • Insurance Companies do not like dishonest people. If you are caught trying to pull one over on the insurance company, they will take full legal action against you.
  • That an Insurance Company has guidelines to follow which before they can cancel your policy.
  • If you decide to cancel your policy mid term, there is a penalty but the most important thing you should do is to take a look at your policy. If there is an accident or ticket, it may be worth staying where you are until renewal. The worst thing you can do it cancel your policy before you have a written confirmation of a quotation with another Company.  If you want to change insurance companies and cancel your existing policy before it expires, be very cautious.

Come visit insurancemarket.ae for your car insurance enquiry. We conduct a ‘know your customer’ check to reduce chances of fraud and hence protect you from facing higher premiums in the future.

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s