You are about to leave Risk Strategies website and view the content of an external website.
You are leaving risk-strategies.com
By accessing this link, you will be leaving Risk Strategies website and entering a website hosted by another party. Please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of Risk Strategies website. We encourage you to read and evaluate the privacy and security policies of the site you are entering, which may be different than those of Risk Strategies.
It has been a while since we updated you on 10 common warning signs that can trigger transportation fraud. Each year fraudulent claims drive transportation costs up in an already expensive insurance market. What can you do to mitigate this?
Pay attention to these 10 potential fraud red flag alerts:
Note: Again, refrain from over-zealously investigating a claim simply because it exhibits one symptom of fraudulent claims. In most true cases of fraud, more than one indicator is present. Also, one must take care not to violate worker rights.
In addition to fraudulent workers' compensation claims, another serious problem is having your vehicles targeted by criminal bands who stage auto accidents to collect on insurance payouts. The tactic most used by these criminals is to lure your driver into rear-ending their car, whose occupants then allegedly develop prolonged and debilitating back and soft-tissue injuries. In rear-end accidents, the fault is almost always assigned to the rear vehicle, which presumably should have been alert enough to avoid the collision.
Staged accidents usually are set up in the situations:
Instruct drivers to be doubly on-guard in the above situations. They should maintain a safe distance from any car in front of them and should watch out for sudden stops for no reason. Often drivers are purposely distracted in the hope that they will relax their guard and fail to notice the car ahead when it suddenly brakes.
Generally, this involves a third vehicle. Perhaps a car alongside begins to drive erratically speeding up, slowing down or cutting in front. Drivers need to be made aware that this behavior may be a precursor to being set up for an accident.
When you suspect fraud, you should notify your insurance broker and carrier as soon as possible. The police can be notified but given the negative consequences of false arrest, you should consider consulting your attorney before levying accusations. Insurance companies differ dramatically in their attitude toward fraud. Some still treat false claims as "the cost of doing business."
Given the expenses faced by the real fraud-fighters, their upfront premiums may not always be the most attractive. Nevertheless, by keeping your claims record as clean as possible, they can save you a lot of money over time. Keep this in mind when shopping for your insurance. Also, look for brokers with dedicated claims service departments and transportation-sector experience that can devote time and energy to making sure your suspicions are properly investigated.