Spurious claims on the rise as economic system bites – Insurers

Insurance coverage firms have stated a few of the folks insured, hit by financial hardship, occasioned by rising inflation and falling incomes, are resorting to creating spurious claims.

The insurers stated they’ve seen in current occasions false claims from clients eager to make the most of their loss state of affairs to higher their situation.

In keeping with the insurers, that is frequent in motor insurance coverage insurance policies the place on the slightest type of accident, clients need to make the most of it to repair and keep their autos, which they might not do earlier than the incident.

Nigeria’s inflation charge rose to 19.64 p.c in July, the best since September 2005, from 18.60 p.c in June, in line with the Nationwide Bureau of Statistics.

The Managing Director of Outdated Mutual Nigeria, Olalekan Oyinlade, who confirmed the rising incidents of fraudulent claims within the business, stated ‘Sure, it’s true that some persons are profiting from their loss to make extra cash.

“There are accidents, however persons are profiting from it to take care of their automobiles, which they might not keep shortly.”

“An insured automotive was bashed from behind and the bumper broken; now, a brand new bumper has been purchased to exchange it, however the proprietor of the automotive is asking that the entire physique of the automotive be repainted. Meaning we’re going to pay a panel beater to work on the entire physique earlier than portray,” a junior insurer stated.

Managing Director of Lifeguard Microinsurance, Adeyinka Oyekunle, the most recent participant within the Nigerian microinsurance house, stated, “We fairly perceive the challenges coping with small revenue earners and the way usually they might ask for claims, however we now have professionals who take a look at these conditions critically and take immediate choices on claims.”

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