Fraud insurance short-term and long-term is rampant
The insurance customers believe that if they shrink the value of the goods then it will lower the premium so that they can save money in the long term. Thiroshen Naidoo as head of the CIB Insurance Administrator considered that the understatements forcing the client to cover the losses in the event of lodging claims. On Thursday, Naidoo said that the client strongly believes that the insurance company cannot pay enough to cover claims and trying to reduce the claim as far as possible.
Naidoo also said that the client has a claim that swell in order to ensure that an insurance company can resolve the claim because the settlement amount will equal the amount lost. However, if the underinsured, the principle of averages will be used or the claim will be settled in proportion and leave the clients to pay the rest at their own expense. “Clients should be aware that this action is actually a fraud and a prejudice all claims, and decisions to ensure the individual insurance in the future,” adds Naidoo.
According to Standard Bank, in a year there has been a short-term insurance fraud with a loss of three billion rand while last year there has been a long-term insurance fraud amounting to more than 100 million Rand. Naidoo explained that this thing is very important if the clients want to buy an expensive item then they should contact the broker to ensure that the coverage has updated accordingly. Therefore, in a year once the value of household contents must adjusted for inflation.