Insurance Fraud in Dubai – we are all paying for it

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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 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.

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Warning: Insurance Adjusters can Spot Fradulent Claims in Dubai and across the UAE

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Did you know there is a National Insurance Crime Bureau? This is an association that breaks down and analyzes the type of claims submitted by many clients on factors like type, location, age group, value of items stolen, time of year and the statistics go on.

There are seminars that Insurance Claims Adjusters must attend to keep up with all the new scenarios, which are starting to show up more often different areas as well as the new indicators that seem to be popping up in other areas.

Private Investigators

There really are private investigators that stake out a customers house or work to confirm the injuries he received in a previous accident are true. They will do back ground checks, interview family, neighbors.  It is just not cut and dry like the years gone by, where you would have a check with no questions asked.

Personal Injury Lawyers

This is the type of scam that really does not start out as a serious injury claim however, bad advice from others, could have the client contacting a lawyer. As soon as this happens, it can be turned into a huge personal accident claim, with the lawyers getting most of the money. The good news is that claims adjusters are always on the look for repetition of certain lawyer firms. Insurance Adjusters are becoming accustom to these well know injury firms.

Suspicious Billing

Not only are there devious lawyers out there trying to fraud the insurance companies, there are doctors doing the same thing. Both classes of these professionals are costing the Insurance Companies and the consumers thousands of dollars. You can also add in repair shops, tow trucks and fraudulent estimates. Unfortunately, when you add in the clients submitting their own fraudulent claims, you can get an idea where all the cash is going.

Just a note to say that there are great lawyers and doctors out there that do assist the client and the insurance companies reporting people who have come to them with obviously fraudulent reasons.

Special Investigation Units

There are special units hired by Insurance Companies that are or were high level detectives. The specialise in fire, vandalism, theft and overseas fraud. Most of these people have been working in this field for many years and can spot a fraudulent claim right from the beginning.

Social Media

Who would have thought that Youtube, facebook or twitter would make such a difference in the outcome of a claim. It is not only accessed for “social” reasons anymore, it is used by employers, police, and claims adjusters. What is put on facebook, stays on facebook and can show and outline a person’s daily life.

Cross checking vehicles, clients, addresses, type of claims, weeds out a lot of scammers. These are a few of the types of fraud that is making our premiums increase each year.

Meet Alfred to benefit from lower car insurance and home insurance rates in Dubai thanks to our no-fraud-tolerance policy! We work with our insurance companies to eliminate any kind of fraud in our book which helps us negotiate better terms for our customers.

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Reading Your Insurance Policy in Dubai

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Why should you read your Insurance policy renewal when it comes in the mail?

You originally talked to your broker when you purchased the policy and you are sure you covered everything at that point. It was enough to satisfy your needs, so you signed the application, it was approved and you went on your way.

Auto insurance in Dubai can change the limits of coverage, offer additional coverage, decrease coverage or can put a cap on different areas. It is done in writing, but you have to read your policy, or you would never know. It is your broker’s job to confirm these types of changes to you as these changes must be communicated to you.

A perfect example of this happened years ago when only the owner of the policy needed to be shown as the driver of the vehicle. Ten, twenty years later, Insurance Companies started basing their rates partly on the drivers experience with continual proof of insurance with no lapse of coverage. This was a huge problem. Originally, their spouse’s name and driver’s license numbers were never needed or even asked for when the policy was issued.

Now there are discounts and lower rates offered to a policy holder where all drivers have proof of a clean record and show at least 6 years of continual licensing and proof of insurance. Now we have an operator who may have been driving on their spouse’s policy for years, but there is no proof of them driving or having been insured because it was never required.

By law, any change to a legal contract must be given in writing to the other party involved. Notice of such change should be given in a timely matter, in insurance it is usually 30 days. There is also a term “grandfathered” which means that if your contract was put in force prior to a specific date, your terms would remain the same as the day you originally signed the contract. While some do offer that type of benefit, some will just give you a year to conform to the new rules.

Another example of changing a contract, happened years ago was allowing all drivers, new or present, insurance with no surcharge for any type of traffic infraction. It was a marketing nightmare when all the drivers with 6 or 7 tickets, flocked to the Company and were not penalized for their driving habits. They did increase the Company policy count, but it also increased their annual loss ratio.

Recently the Insurance Companies have come out with “Accident Protection”. This is an endorsement which waives any additional premium, should you have an at fault accident.

What many people do not realize, it is only good with the Company it is issued. If you do a comparison quote with other companies on renewal, a different company will offer a rate to you, but it is going to charge for the accident. Bottom line, you will have to stay at that particular insurance company until the accident is off your record.

This is little different than the insurance companies changing the original contract. This sort of change is usually done on renewal.  Auto Insurance premiums are regulated with the rules they must abide by each year.  If and when there are changes, they are obligated to advise their clients of any change. This is the importance of reading your policy every year for any changes made or offered to you.

Come and visit where your dedicated personal shopper will help you read and understand your insurance policy.

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Insurance for the Rich and Famous in Dubai – the Private Client Group

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High Valued Homes are the cream of the crop. They are constructed of only the best materials available. Many are customized by the buyer to their specifications. They have hired only the best architects available and do have the final approval before the house is built.

The inside of these homes could have 10,000 square feet of living space. The home would offer the best materials available such as marble, granite, high end flooring and 7 or 8 bedrooms with a washroom in each room. There would probably be an outdoor recreation area with pool, spa and no doubt, much more.  The house for many would be a dream house. For some, it is just their way of life.

When you own a property like this, it is imperative that you have the correct type of coverage. The majority of Insurance Companies have great coverage available, but for some it just isn’t enough. There are however, Insurance Companies that specifically deal with this level of Insurance. They offer comprehensive all risk coverage at very high levels starting at $1,000,000 and up. When money is of no concern, the clients expect the best insurance coverage available to cover their families, their possessions, as well as every day issues that come up. This is the type of insurance that may be requested.

  • Extremely high valued possessions.
  • First class all the way while flying. Some own their own jet.
  • First class type of Yacht. Including all staff needed
  • Exclusive and Immediate Contact with a select person from the Company at any time
  • Extensive Liability Insurance
  • Worldwide Coverage
  • Family protection such as Identity Theft, Kidnapping, ransom
  • Would expect a restaurant to be clear and booked for their party all night.

This is the type of insurance that would be selected for the rich and famous who have sort of an entourage or circle of associates who are there 24 hrs a day. They don’t have the time to call here or there about a claim, the insurance adjusters are specifically trained to handle these types of clients. They know that the client is looking for an adjuster who is there to hand them a check for their immediate needs.

High end insurance companies offer a more comprehensive type policy with more coverage than the standard policy. There is also a new type of home insurance that is made for the mid-market. This class of people would also have very high end possessions, but may not need the full coverage offered on the other policy. This is not to say people that would not qualify for the mid-mart are less than fortunate, it is just a minimum level of Insurance, that would have to be purchased which would cost more and really it is not required for many people.

As mentioned before, about home insurance, it is a good thing to videotape your possessions in the home. Collections quickly add up in value. You might need a more comprehensive policy to fully cover your contents in the house. What every you have, makes you the king or queen of your home. Just look around once in awhile and keep track of collections etc.

At we have a unique proposition for high net worth individuals by the name of Private Client Group, underwritten by a multinational team of first class underwriters. All of the assets can be consolidated under a single umbrella – from the Rolls Royce to the Bombarder Aircraft through to the mansion in Emirates Hills and the megayacht at Dubai Marina!

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Crime Insurance for Small Business

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What is crime Insurance?

Crime insurance is a broad term used to describe a selection of individual coverage relating to the taking of money, securities,and property from a business or organization. It is sometimes divided up between losses that take place inside the business premises and loss that occur outside the premise. Crime Insurance can include employee dishonesty, forgery, theft and robbery burglary or fraud.

Why do I need it? 

Unfortunately, in this day and age, crime continues to rise as more and more businesses use the internet. There are all different types of crime and each has it’s place in a business property policy. Many owners assume that Crime Insurance is including it the Small business package they purchased, however most of the time it is not. It is imperative that you discuss your business insurance with an agent to make sure you are protected. There are a few different types.

Fraud and Embezzlement

Due to economical conditions, fraud is at the top of the list. Sometimes it is not noticed for years. Fraud has always been around, but not to the extent it is now is now. Use of the internet has brought out the worst in people, as it is very hard to track a source down. The sad part is that it could be someone in your office, who you have trusted with confidential information only to find out that funds have gone missing.  They have targeted you and once they know the routines of the office, they will swipe the money from right under your nose.  This could be devastating considering you have private information of your clients, which they probably have taken as well. Check forgery, dummy accounts that have had no red flags of any problems.


Is the unlawful taking of money, by using force or violence or the threat of force or violence. Robbery coverage is only applicable if you are open and present at the time.

Employee Dishonesty Crimes 

When property or money has disappeared due to the criminal act of an employee, a regular crime coverage will not respond to the loss. Most crime policies are set up to protect you from outside crime. You must purchase an Employee Dishonesty policy for any type of internal type of crime.

Best ways to protect yourself against Employee Dishonesty? 

It is absolutely impossible to look over the shoulder of all your employees each day. Here are a few suggestions that may help.

Only give authorization to any banking or accounting personnel who you trust and need the access. A small department looking after all the accounts with high access to a manager, a bit less for an assistant and virtually no access for a data entry clerk. The procedures in place for accounting, payroll, customer payments should be safe if there is a solid procedure in place.

There should only be one person besides you that has check signing authority.

There are specialty software packages available that can be used outside the program all your employees use every day.

Only give the keys to the people who need them.

Security Cameras at all entrances

Always change locks on your business when a key holder leaves the business.

Coverage to a building caused by a Burglary 

If you are renting a building for your business, and there is damage due to a burglary, break-in , it is possible that you will be responsible to pay for any damage caused to the property or building. 

If you are the owner, you may need to have a comprehensive policy to cover the damage. A basic fire policy would not cover damage to the building.

For more information on crime insurance you can meet Alfred at

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Specialised Insurance in Dubai

As with auto, home, boat and life insurance, there are other types of property insurance that are created for a specialty Company like a jewellery, various bond and even special event insurance. A few details on a few of them.

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Jewelllers Block in Dubai

This is a specialty package policy designed for a jewelry store, to meet the requirements of working in their individual business.

Jewelry Block Insurance provides coverage for loss or damage to the insureds property such as, gold and silver pieces, watches, rings, precious stones or currency and ornaments. The clients’ property (excluding currency notes) can also be insured while in transit by mail or courier service.

The coverage for this type of insurance would include, fire, lightning, storms, floods, bursting of water pipes, malicious damage, burglary or theft. This package also includes robbery or attempted robbery. The policy would also cover the contents of the store such as furniture, display cabinets, all fixtures, and computer equipment.

Banker’s Blanket Bond in Dubai

Banks and other financial institutions are exposed to the risks of loss of or damage to their property. They insure office contents, data, computer systems, and loss of money. It also covers monetary items from their own premises or in transit. The coverage extends to counterfeit money, bad or forged checks, losses due to fraudulent act of employees.

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The Bankers Blanket Insurance policy was written especially for bankers and is worded to provide be most effective insurance protection. There are additional riders that can be added to this type of policy.

Bonds in Dubai

A bond is a guarantee that you will complete and provide your obligations to another party. These bonds are legally binding and are used by varies types of business for contractors.  Bonds can be in the form of bank guarantee or an insurance policy. Generally bonds are sought by governing authorities, principals or customers from contractors or vendors or on certain projects to ensure performance of the assigned obligation. There are many legal bonds, each designed for varies types of business. These are a few more popular

1. Surety Bond

2. Bid bonds

3. Performance bonds

4. Payment bonds

It is critical to evaluate the type of bond required, obligations under the bid and the bid value itself to determine the exposure.

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Surety Bond in Dubai

A  Surety Bond is a legally binding contract between two parties. The bond guarantees a payment of the purchased amount.

Bid Bond in Dubai

A guarantee from a bank or any financial institution that guarantees that upon acceptance of the bid, the insured will proceed with the contract and purchase a performance bond.

Performance Bond in Dubai

The performance bond guarantees that if the contractor fails to complete the full performance as read in the contract.  This would allow the customer to recover the total amount of the bond.

Payment Bonds in Dubai

A deposit of usually 20 per cent of the bid is submitted by the bidder. A payment bond guarantees that at the completion of the contract, all monies owing to suppliers, employees and vendors, will be paid on time and in full.

Visit the business insurance page on InsuranceMarket and get in touch with us to have a tailor made solution for your specific requirement.

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Employee Benefit Insurance Packages

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Some are very lucky to have an employer who offers health insurance coverage within their employee benefit packages. Most are comprehensive plans and offer an array of coverage. What are some of the employee benefits and what do they cover?

  • Employee Benefits are given to a person when they first start working at a Company, They can sometimes take the place if you’re having a higher income. If you have no medical insurance, these benefits are well worth taking a lower salary.
  • The Insurance plans include life insurance, prescription and eyeglass coverage. You can pick out a plan that will pay for all your medical expenses, including hospital stays, ambulance costs, surgery cost or an eye examination. On basic coverage you usually get LTD which means Long Term Disability.
  • Insurers will sometimes include a Dental plan or give you an option to add it too your policy.
  • Critical Care – This coverage is priceless. If you fall ill with a life threatening illness, as an example, cancer, this coverage will give you money immediately to use for whatever you want or need to spend it on. It could be paying for the cost of a relative to fly to your home, all expenses needed for medical care, accessories, transportation and many more.
  • Some insurers offer different types of Pension plans. They are usually the type that whatever you contribute, the employer will match your contribution to the plan. Most pensions can be continued on if your leave that employer so you can continue to pay into it.
  • Income protection is a definite asset to any benefit package. The amount varies depending on your salary.

Employee benefits insurance packages for good for the employee and employer.  When a Company offers an attractive benefit package, it could be the deal breaker when an offer is made to the potential employee. Medical and Dental care, along with prescriptions, or hospital stays is definitely worth taking a lower salary.  

There are also additional benefits that are different from other employees. Hours and time off is a great incentive for all employees. A Company offering to pay for maternity leave, holidays, flexible hours and Company events keep the employees happy especially when they can include their family during a Company picnic or celebration.

Having a presence on the Internet is imperative for all Insurance Companies. They must have all the newest technology and should be available 24/7. Some are setting up “chat lines”. It doesn’t matter if it is auto insurance, home insurance or business insurance or medical, there has to be someone available to assist their customers if an emergency should occur over night.

The brokers could also provide assistance by listing their partner Companies emergency number on their website, or put them on their voicemail.

At we can design the right employee benefits solution for your organisation.

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