Auto insurance fraud is a constantly increasing phenomenon, representing a major challenge for insurers. Whether it's misleading statements, fictional claims, or document forgery, the methods used to deceive insurance companies are varied and sophisticated. What are the different types of auto insurance scams? What are the risks and sanctions involved? And how do you protect yourself from it? We take stock in this article.
Car insurance is a essential financial protection for vehicle owners. It is designed to protect both the driver and the third parties in case of accidents, property damage, or personal injury.
By taking out car insurance, the driver can be indemnified for damage to his own vehicle, whether as a result of an accident, vandalism, theft, or natural disasters.
In addition, car insurance generally includes a civil liability, which covers damage caused to third parties, including personal injury and property damage. This cover is often obligatory in many countries, including France. She is a legal prerequisite to drive on public roads.
To avoid the abundance of false declarations, the law requires each underwriter to provide accurate information to their insurer. We explain to you.
According to thearticle L.113-2 of the Insurance Code, when taking out a car insurance contract, the member must comply with several legal obligations.
Making a false statement is risky. What are the most common types of fraud? What are their consequences? We're taking stock.
In 2022, according to a study conducted by YouGov, 22% of insured persons assume that they have already defrauded insurance. What are the different types of auto insurance scams?
Reporting fictitious claims is a common scam practice.
The practice is rather simple, the ill-intentioned policyholders Invent incidents or Exaggerate damage to get a unwarranted compensation. To get a better idea, here are a few examples:
To save money, some policyholders deliberately omit to provide all the information to their insurer when subscribing. How do they do it?
For example, they do not mention the existence of another driver. The technique is well-established: by ignoring a driver, they hope to pay less when subscribing.
Do you need additional information? Read our article Insurance subscription fraud and money laundering
An information statement is an official document detailing an underwriter's auto insurance history. There are several advantages to this, namely:
As evidenced by the Insurance Code, policyholders must report any claim to their insurance company. Not reporting an accident is a common fraud, which is also often used, to avoid an increase in premiums.
After an accident, it can be tempting to change the information on the amicable report. For what purpose? Reducing your responsibility or get higher compensation.
To learn more about property insurance fraud, click here: property insurance, compensation fraud
Falsifying claims has become a common practice, often used to obtain benefits in a fraudulent manner. The objective is to receive money or to have damage covered that the insurer would not have covered if the real situation had been known.
In France, this type of fraud is considered to be a Criminal offense and is severely punished by law.
In accordance withSection 313-1 of the Criminal Code, sanctions may include a fine of up to 375,000 euros and a prison sentence of up to 5 years. Note that there are also additional penalties for aggravating circumstances, such as participation in an organized gang.
In addition, in case of falsification of documents, penalties may include a fine of 45,000 euros and a prison sentence of up to 3 years, in accordance withSection 441-1 of the Penal Code.
To find out more about the risks and sanctions involved, we interviewed Emeric Desonix, lawyer and expert in the fight against fraud, you will find his interview in our article: Insurance fraud, what are the risks and consequences?
Regulatory initiatives, such as the Insured Vehicle File (FAV), play a crucial role in the fight against fraud.
This file allows you to quickly check If a vehicle is properly insured, reducing the possibility of false statements. Regularly supplied by insurance companies When a driver takes out a contract, ARGOS uses it to detect and prevent fraud.
Setting up specialized teams is a good way to fight car insurance fraud.
These teams can work closely with law enforcement and collaborate with other insurance companies to share information about known fraudsters. Together, they improve the effectiveness of the fight against fraud!
It is recommended that insurance companies use advanced technologies, like artificial intelligence And the Machine learning, to detect and prevent fraud.
These tools make it possible toanalyze claims data in order to identify suspicious behavior or unusual patterns, such as inconsistent statements or recurring claims.
At Finovox, we have developed a innovative solution, specially designed to help businesses detect, pinpoint, and explain any form of document fraud. Our technology is based on a proprietary artificial intelligence Who analyzes the data structure, the metadata, and the consistency of information present in the documents.
In addition to this in-depth analysis, Finovox offers you the possibility to understand And of share the alterations detected in your documents. How does it work? You can conduct your survey directly on our platform and get a detailed summary sheet in PDF format.
Interested in our solution? Contact our experts to find out more and find out how it can benefit your business!
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