Motor Fleet Insurance Tips - How To Prevent Fleet Fraud
Motor fleet fraud through falsified accidents and inflated claims cost insurers and businesses billions of pounds each year. A staged accident or injury claim by an employee can mean expensive payouts and increased Motor Fleet Insurance premiums, as such, it is essential that your firm takes steps to prevent and detect employee fraud.
Customise Your Approach
Internal fleet management controls and anti-fraud measures should be designed and customised for your individual business needs based on your specific requirements. In addition, stay alert for the following red flags:
- Driver with a history of prior accidents of similar circumstances.
- Driver with multiple past claims with the same solicitor.
- Driver that demonstrates familiarity with claims process and claim evaluation.
- An overly enthusiastic witness present at the accident scene.
Fleet Management Programme Tips
Fleet management programmes that incorporate a fleet safety policy are most successful at preventing fraud when they cover the following areas.
#1 Management Commitment
Clearly define your management’s role and commitment to preventing and detecting fraudulent claims. Most perpetrators of fraud engage in illegal conduct only when they perceive that they will not be caught.
#2 Written Policies and Procedures
All permitted and prohibited driver behaviour, along with proper procedures to follow in the event of an accident, should be clearly listed in a written policy.
#3 Driver Agreements
Documenting a driver’s commitment to conform to all fleet policies and procedures can help to deter aberrant behaviour. If a firm develops a clear perception in its employees’ minds that illegal acts will be detected, it can significantly reduce occupational fraud.
#4 Driver Records Checks
Verify that drivers have the appropriate entitlements to drive. Also, DVLA records can be shared, subject to driver consent, with organisations that show a demonstrable and relevant need for the information. Accurate and appropriate driver and licence records also demonstrates good housekeeping to your Motor Fleet Insurance company, which can feed into lower claims ratios and premium reductions.
#5 Crash Reporting and Investigation
Work with your insurer to conduct a thorough and detailed investigation of each claim. Provide forms and accident packs for employees to complete in the event of an accident.
#6 Vehicle Selection, Maintenance and Inspection
Conducting regular vehicle inspections will demonstrate your commitment to prevent accidents and fleet fraud. Vehicle selection policy can also play a big part in reducing risk, a business vehicle is a tool of trade and should be suitable and fit for purpose. For example a two seater sports car may not be the most approriate vehicle for delivery purposes and could encourage poor driver behaviour.
In some circumstances employers could also be deemed liable should a driver suffer injury in a motor accident, on the basis that the provided vehicle was not suitable for the job they were being asked to carry out.
#7 Disciplinary Action System
Make the serious repercussions of fraud clear, including legal action and termination. Adopting concealed internal controls may assist in detecting fraud, but it generally does not prevent it because employees are unaware of their presence and potential detective ability.
#8 Reward and Incentive Programme
The most successful fleet operators incentivize and reward good driving behaviour. By rewarding employees for good driving habits and lack of accidents and claims, engagement will increase and can often feed back into dramatic reductions in fleet insurance cost.
Fleet Risk Management
For any business operating vehicles under a fleet motor insurance policy, it is important to demonstrate to your insurer that adequate fleet procedures are in place to minimise risk – including occupational fraud.
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About the Author
I’m passionate about family, sport, technology and business.
In fact, I have always been fascinated by business, whether it was running the school tuck-shop or my Saturday job in the local store, I was always looking for ways to improve or view things differently.
I have enjoyed an amazing career fast approaching 25 years in the insurance industry, which has given me real insight into the challenges and opportunities faced by SME businesses in today’s ever-evolving marketplace.
I co-founded Insync Insurance, to offer companies a new way to buy and manage their business insurance. A synergy of digital servicing and personal expertise - utilising the latest technology to enhance relationships, not to replace them.