To cover the material damage that occurs in the daily life of each individual, insurance, Property Damage (DAB), was created. It makes it possible to cover moveable and immovable property but also the liability of individuals. However, as an insurer, you have to be vigilant because fraud in this sector is spreading like hotcakes. Reminders on this type of insurance, legal obligations and the development of compensation fraud, we take stock together.
Its name says a lot, property insurance allows each individual toinsure its material and intangible assets against the damage that occurs in his daily life. The damage can be varied: accident, theft or even fire.
Property insurance is grouped under the same umbrella as liability insurance, i.e. within damage insurance.
Today, there are two main contracts for property insurance:
👀 Good to know:
There are also other insurance policies, including Nomad devices which include your electronic devices such as your smartphone, camera, computer or tablet.
To get a clearer picture of the insurance industry, we have a dedicated article: Focus on the different insurance sectors
Each insurance coverage is very specific and depends on the contract you subscribe to And options that you choose. It is therefore important to be well informed about exclusions And the warranty ceilings.
In general, the claims covered are:
According to theArticle 1240 of the Civil Code,”Any act of man, which causes damage to others, obliges the person through whose fault he succeeded to repair it.”
For this reason, French legislation requires the subscription of civil liability for renters of homes and for owners of motor vehicles.
👉 Example:
While bickering, Julie unintentionally breaks her friend Caroline's wrist. Legally, it causes damage to a third party. It is therefore her civil liability that takes over and indemnifies Caroline.
Property insurance fraud is a major problem that affects all insurance companies, without exception.
It occurs when individuals provide intentionally falsified information in order toget insurance benefits or to claim imaginary damage.
This makes it easy for the fraudster to make money. Indeed, by declaring false claims or exaggerating losses, he hopes to obtain compensation payments from his insurance company.
To make property insurance fraud clearer in your mind, we are giving you an example. Let's imagine that a person declares to their insurance company that they have been the victim of jewelry stolen at home. However, upon investigation, it turns out that these jewels never existed or that they were hidden in preparation for the declaration of theft. In this case, the insured tries to benefit from a refund for goods that he never owned or that he concealed in order to receive compensation.
To find out more about the risks of insurance fraud: Insurance fraud, what are the risks and consequences?
To combat the scourge of property insurance fraud, insurance companies can use several methods.
To protect themselves from property insurance fraud, insurance companies and policyholders can take several preventive measures.
Insurance companies must, as a first step, assess risks before taking out an insurance policy.
They can, for example, check the background of applicants, Inspect insured property and In this way, assess the probability of a disaster.
Insurance companies can carefully check all claims from their policyholders to attest to their legitimacy.
For example, they can collect evidence, working with claims adjusters or monitor suspicious behavior and abnormal.
Insurance companies can make use of advanced technologies such as artificial intelligence, machine learning and data analysis to detect and prevent property insurance fraud more effectively.
These tools can identify fraud patterns, improve the accuracy of risk assessments, and speed up the claims process.
At Finovox, we have developed a solution available in SaaS or API format. It allows businesses to detect, identify and explain any type of document fraud. The solution is developed using proprietary artificial intelligence that Analyze the data structure, the metadata And the consistency of information issues in the documents.
In addition to this first analysis, Finovox allows you to understand and share the alteration of your documents. How? You investigate the platform and retrieve the analysis via a summary sheet available in PDF format.
Are you interested in this solution? Contact our experts to find out!
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