SA Insurance Companies Beset By Fraudulent Claims |
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07 May - Fraud is a major issue facing the South African short term insurance industry, and the director of Auto & General has gone on record as saying that the amount this costs insurers is at least R850 million a year, but could be as high as R1.7 billion. Instances of fraud account for anywhere between 5% and 10% of all subimitted claims in South Africa, according to Angelo Haggiyannes who is A&G's director. The total value of short term claims is R17 billion per annum, which means that fraudulent claims could well be over R1 billion. There are many different ways that certain policy holders attempt to defraud the insurance provider. In the most severe cases the theft of property is completely fabricated. Clients claim that homes or cars have been burgled and possessions stolen as a result, when in fact no such burglary ever occurred. A more common scenario for insurance fraud is that a genuine loss of property has taken place but items of a greater value are said to have disappeared, or a claim is made for more than the value of what was taken. South African life insurance companies are not exempt from dealing with fictitious claims either. In fact there are 5000 reported cases of long term insurance fraud each year in South Africa. The total amount of fraud is R250 million a year, languishing behind the short term industry statistics but certainly still significant in its own right. Related Insurance Articles: * Car Insurance Scams In South Africa Exposed * SA Insurance Study Shows Dialling Direct Is The Future * Old Mutual Posts Strong First Quarter Results * Sanlam Set To Offer Direct Life Insurance * SA Car And Home Insurance Risk Factors * Gripes About South African Life Insurance On The Rise * South African Home Insurance Tips * Car Insurance Coverage For Repairs - The Facts 
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| 3/14/2010 7:05:03 AM | |||||||||||||||||||||
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