- Reported cases of insurance fraud declined 29 percent in the first six months of this year as companies continued to tighten oversight and enhance transparency.
- IRA shows there were 45 reported cases of insurance fraud between January and June this year compared to 64 in a similar period of 2020.
Reported cases of insurance fraud declined 29 percent in the first six months of this year as companies continued to tighten oversight and enhance transparency.
Data by the Insurance Regulatory Authority (IRA) shows there were 45 reported cases of insurance fraud between January and June this year compared to 64 in a similar period of 2020.
IRA says fraud cases have been on a steady decline over the last four years as the industry stepped up ways of curbing fraud by enhancing transparency, disclosure of information during claims.
The most frequent f cases in the half-year were seven fraudulent motor accident (Injury) claims, five stealing by agents, and four forgeries and conspiracy to defraud.
Last year in six months alone there were 11 fraudulent motor theft claims and six false motor accident injury claims.
Insurers have in the past stated that cases of fraud in the form of multiple insurance contracts and claims on a single-vehicle are rampant.
Last year IRA signed a pact with National Transport and Safety Authority (NTSA) to include insurance details as part of their database to help stop multiple uses of the same number plates to buy insurance for different vehicles.
The deal has seen insurance companies send their motor vehicle insurance policies to Transport Integrated Management System (TIMS) in real-time while at the same time provide insurance companies with a way of validating vehicle ownership.
“This agreement will help curb fraud and other vices in the motor vehicle class of insurance business and ultimately this will quicken the time taken to settle motor vehicle insurance claims since detailed data on the motor vehicles would be readily available,” IRA chief executive Godfrey Kiptum said at the time.
NTSA piloted the integrated system with fourteen insurance service providers last year which it says proved successful and now wants to bring on board all insurance firms onto the platform.