Another problem is ‘ghost broking’ where an alleged ‘broker’ buys a policy for a customer using details they know will produce a cheaper premium rather than the correct information.
But the consequence is that the insurance is worthless. And in some incidents the ‘broker’ doesn’t buys the policy but simply provides details of the quote from the insurer and pockets the cash.
AXA Business Insurance gave us a couple of examples of insurance fraud.
A potential customer gave a business address in Birmingham but claimed his van was garaged overnight in Inverness. He was asked to explain how he managed this daily commute, especially as he also claimed to drive only 4000 miles a year.
Another customer described himself as a gardener when buying his policy online but was caught out when it was revealed he was in the scrap metal trade.
He claimed the scrap metal and old baths in his van were things he’d found in customers’ gardens and that he had a local authority licence for carrying hazardous materials “just in case”.
Darrell Sansom said: “In many instances, it may be that drivers simply don’t realise that what they are doing is wrong or the potential consequences of their actions. But spending a little time to ensure you get your application right can mean a lot in the future and we want to warn everyone that it’s really not a risk worth taking.”
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