Fraudulent accident claim - aggravated damages

It is fraudulent for a motorist to submit a claim for repair to a vehicle where the damages have been aggravated or created after the accident. For example, if the orginal damage is a scratch and the repairs are for a major dent, the claimant is committing a fraud, i.e. cheating.

Many vehicle owners may not be aware that they are a party to this fraud. They leave the car to their workshop and sign an authority for the workshop to make a claim on their behalf. Some workshop, that specialises in inflating the claim, will aggravated the damage or inflict additional damages to the vehicle, and will take a photograph of the damages, to submit to the insurance company.

The insurance claim officer may not investigate the claim and will accept the claim as submitted. They are unwilling to challenge the claim, even if they were asked by the policyholders.

This fraud has been rampant for several decades. Large sums are being paid for the inflated claims. This results in higher premiums being charged for motor insurance.

Many people have lodged reports to the Police on this fraudulent activities in past years. If the Police is serious about  investigate the complaints and bring the culprits to court, this fraud can be contained. I hope that this action can be taken, to reduce the cost of motor insurance in Singapore.

Tan Kin Lian