Insurance companies create 'Fraud bureau' to crackdown on false claims

A claim form
A claim form Photo credit: File

Insurance fraudsters beware - a new organisation has been established to crackdown on fake claims.

Set up by the Insurance Council, the Insurance Fraud Bureau (IFB)  will coordinate anti-fraud efforts among insurers.

The IFB is encouraging Kiwis to dob in people they suspect of carrying out insurance fraud. 

Insurance fraud is estimated to cause losses of up to $614 million a year - a cost passed onto customers.

"The thing about insurance is everyone puts their premiums into a pool and that way the majority pays for the misfortunes of a few," said Insurance Council chief executive Tim Grafton on Tuesday.

"When people make false claims, it's a cost on everybody. It's not a victimless crime; the victims of the crime are every other policy holder."

IFB is encouraging people to report insurance fraud via a hotline or contact through the website.

Grafton says there are two kinds of fraud.

"There is soft fraud which is opportunist and exaggerated claims, and then hard fraud which could be staging arson or theft."

IFB will provide education about the impact of false claims on premiums and ensure insurers are aware of instances of fraud.

It will also analyse data relating to insurance fraud in New Zealand to crack down on false claims.

If you suspect insurance fraud, you can call 0508 372 835 or email fraud@ifb.org.nz 

Newshub.

 

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