Vehicle insurance: What are the most frequent frauds that insurance companies are looking for?

More than EUR 7 million per year is costed through car, engine and truck insurance. Their specialised partners or police authorities identify every year thousands of cases, from staged car accidents, drivers’ efforts to cover damage already existing to avoid burdening costs, up to more complex cases with circuits in which garages are involved. According to the data collected by insurance companies and the last survey carried out within a year, 10,849 cases were checked and 5,296 frauds were identified with the insurance contract, while in 2022 it is estimated that in the middle of each verified fraud, insurance was charged with €1,339. Irrespective damage to the conditions of the accident Pre-existing damage Damage in a short period of either the start of insurance or the extension of cover (addition of cover) Losses without contact between the vehicles involved Overvaluation or excessive requirement Inconsistent statements Repeated damage Friendly or related or other relationship (e.g. colleagues, neighbors) between the parties involved The accident occurred in evening hours. The accident occurred in a remote area Complex repair or spare parts Add new coverage or increase of existing coverage limits during insurance Losses between vehicles insured by the same insurance agent – intermediary falsified documents Unable to produce documents/ evidence Falsified vehicles (frame/engine number change and/or further technical identification characteristics) As explained in a recent investigation into insurance fraud, Mr.Carolos Saias, Chairman of the Insurance Fraud Prevention and Response Committee in the Insurance Companies Association “this is a phenomenon that employs insurance companies worldwide as it affects the foundations of the insurance institution by burdening not only insurance undertakings but especially insurance companies. The EUPM and the Greek insurance market are systematically active in combating it by action in the fields of information, development of partnerships with authorities and bodies, internal organisation and market education and statistical data collection. As the investigation shows, significant progress has been made in the organisation of the market, as the cases of fraud verified are increasing. We will intensify our work in this direction as it is our duty to protect our insured.” Vicky Gerasimou (journalist , publishing director “am” magazine)