20 percent insurance claims are fake: Ipec
THE Insurance and Pensions Commission (Ipec) has raised the red flag over the increase in cases of clients who make fraudulent insurance claims.
During the virtual official launch of the 2021 journalistic mentorship program, Ipec commissioner, Dr Grace Muradzikwa said about 20 percent of the claims processed were fake.
Besides making multiple claims, some have also designed methods of overstating and overvaluing properties as they seek to profiteer from insurance companies.
“Although I cannot quantify the loss that the insurance industry is encountering, it is important to note that almost 20 percent of claims processed are fake,” she said. “This is a serious challenge that has hit the industry hard as people continue to make fictitious claims.”
Dr Muradzikwa said either people were overstating the claims or using fake documents.
“People are now disregarding the ‘utmost good faith’ principle, which guides the industry. Increasingly, we have noted that there are now a lot of charlatans in the industry,” she said.
“You find that a person can insure a vehicle that is already damaged and bring fake police reports and fake documents to be indemnified.
“One person might be owning a Toyota Runx but goes on to make a claim that can afford a Mercedes Benz, which is fraud on its own. No one is supposed to profiteer from insurance rather, insurance should replace the property that you have lost.”
Dr Muradzikwa said Ipec was seized with putting in place structures that curtail the fraudulent acts.
“We are, in collaboration with the Insurance Commission of Zimbabwe (ICZ), creating a claims platform where all the insurance firms can share claims made so that no one can make a double claim,” she said.
“The move is expected to limit multiple claims, which have become a phenomenon in the industry.”
The claims platform is also expected to become a robust assessment centre where claims are assessed and investigated as the industry seeks to wipe out fraudulent claims.
The solution, she said, lies largely with the insurance companies to come up with initiatives that totally eradicate the fraudulent acts.
The journalist’s mentorship programme was designed to equip journalists with relevant knowledge and on reporting on insurance and pensions issues.
More than 40 journalists drawn from across the country and newsrooms are taking part in the class of 2021.-chronicle.cl.zw
