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Old 23rd May 2020, 02:43   #16
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Default Re: Indian car owners damage their cars for bogus insurance claims

This was prevalent in the UK, known as Crash for Cash. Mostly one would deliberately brake suddenly in the middle of the road, to be rear ended.
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Old 23rd May 2020, 09:41   #17
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Default Re: Indian car owners damage their cars for bogus insurance claims

I've seen a guy whose Range Rover was giving him mechanical troubles and service and repair cost estimated around 8 lakhs!! To avoid paying from his pockets and save himself money and trouble of selling the car, he got his car damaged to an extent that it would be eligible for Total Loss claim on the insurance.

He was in a rude shock when discovered the Insurance had expired just 3 days ago from the fiasco!
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Old 23rd May 2020, 11:49   #18
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Default Re: Indian car owners damage their cars for bogus insurance claims

Technically the customer isn't doing a crime here. For instance, we all get small dings and dangs on our cars, most of the times due to carelessness of others on the road. At the same time, I am paying a higher premium year after year to have everything covered. Usually I ignore these small dents and keep driving either due to the hassle of dropping the car for multiple days at the workshop, exposing it to dirt and potential misuse at the dealership and secondly, lose out on NCB etc. But if in the future, when the car indeed needs repair work for a larger damage, I don't see any wrong in getting the other minor dents too taken care of. The whole point of having the policy is to cover me for any damage, big or small. Things like NCB have been invented to discourage a customer for filing a claim and hence the insurance companies are no saints either. So when I do indeed file for a claim, I wouldn't mind in getting as much stuff fixed as possible.
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Old 23rd May 2020, 14:22   #19
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Default Re: Indian car owners damage their cars for bogus insurance claims

All the three parties Customer, Workshop & Insurance Folks are very much aware when an intentional damage is done to the vehicle. It's usually workshop people who act as a mediator between customer & insurance company to take care of all the claims.
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Old 23rd May 2020, 19:33   #20
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Default Re: Indian car owners damage their cars for bogus insurance claims

Quote:
Originally Posted by Jeep View Post
This was prevalent in the UK, known as Crash for Cash. Mostly one would deliberately brake suddenly in the middle of the road, to be rear ended.
These were done more for the bogus injury claims. A lot of folks were caught out by

1: Crashes happening too many times in one area
2: Dash cams catching them in the act and filming the victims looking unhurt
3: The accidents mainly happened at speeds that do not justify the injuries
4: The same claimant popping up in a few claims.

The fact that insurance companies share a lot of data except their pricing and artificial intelligence hence unearth scams a lot faster.

Nowadays it is flash to cash. Abroad, flashing your lights means "do cut in" or allowing a car through. Folks will flash and then the crash into the hapless victim.

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Originally Posted by drmohitg View Post
Things like NCB have been invented to discourage a customer for filing a claim and hence the insurance companies are no saints either. So when I do indeed file for a claim, I wouldn't mind in getting as much stuff fixed as possible.
The other tool is the minimum excess that you pay. It dissuades claims for small amounts but it motivates one to make the damage a lot more.
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Old 24th May 2020, 09:15   #21
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Default Re: Indian car owners damage their cars for bogus insurance claims

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Originally Posted by Kashish View Post
While the above-mentioned points highlight some drawbacks of the insurance system I'm also equally very happy to report that there is almost zero corruption in the system, especially the surveyors are usually nice to deal with and are willing to help out the insured and cover the maximum under insurance(sometimes even if it is not related to the claim)
That usually works out where the insurance is cashless. I made the mistake of paying for repairs much cheaper at a FNG and then raising a claim, when a drunk auto driver t boned my Scorpio.

After the deductible of around 3000 the man approved a total of 7000 whereas it cost me about 18k to fix the damages.
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Old 24th May 2020, 11:10   #22
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Default Re: Indian car owners damage their cars for bogus insurance claims

Let me share some of the prevalent practices that I am aware of.

An ex-colleague of mine used to give his first gen Figo for annual service and repair. He would claim insurance for all the battle scars that the car had received throughout the year, in multiple incidents and get them fixed in one go. All the work was carried out at the Ford ASS only. Price to pocket: one bottle whisky and 2-5k rupees to the surveyor based on the extent of repairs.

Another group of friends have repaired their respective Balenos for various accident damages. During such claims, the MASS guy has suggested breaking the good tail light too to replace the pair of them, tore the bumper so that it is eligible for replacement and such. He also inflates the bill so that it can cover the repair/paint patchwork of minor damages in other parts of the car which were unrelated to this claim!
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Old 25th May 2020, 09:02   #23
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Default Re: Indian car owners damage their cars for bogus insurance claims

You know what the sad part is? Us honest car owners have to pay higher premiums because of these bogus claims .

Quote:
Originally Posted by PrideRed View Post
I doubt folks do this just to claim insurance but to get more likes/viewership for their videos.
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Originally Posted by Jeroen View Post
I somehow find it difficult to imagine these scammers would put their efforts out on social media for everybody to see.
I think it's more a case of their over-eager friends sharing the video on whatsapp, and then the inevitable forwards leading to it being published on Facebook & Instagram.
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