Fight Car Insurance Fraud

Car insurance fraud is real in the UAE. If you live in the UAE and your vehicle is insured, you should be aware of car insurance fraud. Suppose someone tries to receive undeserved financial benefits from a car insurance company. In that case, it is considered a fraud; believe it or not, most people have attempted to defraud the insurance providers in the 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

Soft Fraud

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:

1. The insured has been involved in an accident and exaggerates the extent of the car damage.
2.  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.
3. 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.

Hard Fraud

This is much more serious than soft fraud, and it is believed that only hardcore criminals can commit this fraud. This refers to when someone intentionally orchestrates an incident that allows them to file a claim. Here are a few examples of card fraud:

1. Two or more insured drivers stage an accident by colliding into each other thereby filing for claims.
2. 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.
3. 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

Be Alert:

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.

Report:

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.

Stay Honest:

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. Plenty of ghost brokers render deals that are too good to be true. Be wary of such offers.

FAQs

What are 3 main types of insurance?

There are three main types of insurance: property, liability and life insurance.

What is insurance risk?

Insurance risks are the uncertainty that arise from the occurrence of possible events. 

What is insurance third party?

A third-party insurance is the type of car insurance cover that only covers for the third party damages. The person receiving the claim would be the one whose car has been damaged by the policy holder’s vehicle. 

What are the contact details of the UAE insurance authority?

You can call and email to the insurance authority of UAE between 7:30AM to 2:30PM from Thursday to Sunday. Here are the contact details:

Call: 800(AUAE)42823

Email: consumerhappiness@cbuae.gov.ae

What are the examples of car insurance fraud?

Following are the examples of car insurance fraud:

• Multiple claims filed for a single accident.
• Filing a claim with fake car insurance.
• Falsifying information to get cheaper car insurance quotes.
• Not adding a teen driver to a family car insurance policy.

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