It’s good news indeed if Budget Insurance Brokers’ claim that the short-term insurance industry is becoming ever more adept at identifying fraudulent insurance claims by individuals and syndicates is true.
Budget’s Martin Janse van Rensburg says that, as of November last year, the South African Insurance Crime Bureau (SAICB) had nine active insurance fraud cases under investigation and successfully prosecuted three cases, recovering R380Â 000 for the industry.
“The approximate value of cases currently under investigation is R120-million, according to the SAICB,” Janse van Rensburg says.
Insurance fraud occurs when a false or exaggerated claim is made to an insurance company. For example, someone might file a claim for additional damage that occurred long before any damage that he or she is claiming for. This is exaggerated fraud.
A false claim is, for example, when a criminal has fabricated vehicle identification numbers (VINs) for cars that have never existed, then filed theft claims with insurers.
The problem with fraud (criminality aside) is that it costs honest consumers in the end — quite apart from costing insurance companies millions each year. You and I will pay higher premiums to cover those losses incurred by fraud.
“The main point to keep in mind is that the purpose of insurance is not enrichment, but rather like-for-like replacement,” says Janse van Rensburg.
If you have any tips-offs with regard to insurance fraud or inappropriate claims, call the insurance fraud line on 0860Â 002526 or send an email to [email protected].
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