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Fraudulent vehicle damages claims

January 1, 2009 by Accident Specialist Leave a Comment

Fraudulent vehicle damage claims:

Untitled-1

Over the last couple of months, Accident Specialist (www.accidentspecialist.co.za) has received a number of interesting fraudulent claim cases to examine. Two of these cases appear to be the result of an insured trying to escape financial burden by pretending that his vehicle has been so damaged that it should be written off. It is suspected that any payout by the insurance company for the written-off vehicle would then settle any outstanding liabilities with the finance house used in the purchase of the vehicle and so get the insured out of a debt trap.

 

Although not a revelation, we bring this to your attention as there appears to have been an increase in this practice, likely to be as a result of various factors, not least of all due to the current spate of heightened financial burdens. Likewise, it appears that there is prima facie evidence of involvement of recovery companies, panel beating companies, and private assessing companies in the fraudulent activities, no doubt as there is financial reward.

 

Read the full article in this PDF document

 

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