Insurers do investigate! Don’t lie or pad your claim – Wendy Knowler

Relebogile Mabotja speaks to consumer journalist Wendy Knowler on why insurers can conduct investigations prior to paying out a claim.

The simple answer? Insurance fraud.

The Insurance Crime Bureau estimates that up to 30% of claims contain an element of ‘concern’.
[This means] something that is not 100% truthful… from padding the claim a little bit or falsifying the entire claim, especially if it is an expensive claim.

Wendy Knowler, consumer journalist
It is important to always keep your insurer up to date on any changes to your risk profile – this includes a change of address or even the vehicle’s use (personal or business).

But, why are in-depth investigations necessary?

To protect the ‘pool’ of premiums, says Christelle Colman, CEO of Ami Underwriting Managers.

The premiums paid by clients go into a ‘pool’ which is used to pay valid claims.
This is why insurance companies start asking questions… we need to investigate a little bit further in order to protect this pool of premiums.

Christelle Colman, CEO – Ami Underwriting Managers
In-depth investigations will not be carried out on every client/claim as it does come at a cost to the insurer – the decision is made based on indicators provided in the claim.

Investigations can include anything from conducting interviews with the people you were with to scouting a client’s social media.

Naked Insurance co-founder Ernest North adds that a client’s consent must be requested, in writing, for the insurer to obtain private and financial information, such as bank statements.

Many clients do, however, overlook the fact that a lot of information is available in the public domain.
Whether about a transaction you were part of or about something you [or someone else] posted online, we are perfectly within our right (depending on the social media platform) to access that.

Ernest North, co-founder – Naked Insurance
Moral of the story – don’t lie to your insurer!

Scroll up to listen to the in-depth discussion.