Chapter 6 Flashcards
Which organisation runs a confidential Cheatline where people can report suspected insurance frauds?
Insurance Fraud Bureau (IFB)
Which databases does the IFB analyse?
- Claims and Underwriting Exchange
- Motor Insurance Anti Fraud and Theft Register
- Motor Insurance Database
What is a non-profit making organisation created to tackle the growing problem of Insurance Fraud in the UK?
IFIG, which stands for the Insurance Fraud Investigators Group.
Where does a repairer typically make its profit from?
Parts, in particular, paint
What are some examples of costs met by the policyholder collecting their vehicle from a repairer?
- Any excess shown on the policy
- Any private work carried out at the same time as repair
- Any contribution for betterment
- VAT, where the policyholder is VAT registered
Can a policyholder recover any premiums if a claim is deemed to be fraudulent in the policy term and the insurer voids the policy?
No. A voided policy is treated as if the policy never existed
What is the first stage of the process in the ‘Ministry of Justice Reforms’ claims process for low value RTA injury claims?
The claimant’s solicitor sends a Claim Notification Form (‘CNF’) to the defendant’s insurers electronically
How long does the defendant’s insurer have to respond to a CNF issued to them in the Ministry of Justice Reforms electronic portal process?
15 days. If the defendant’s insurer fails to respond within 15 days or disputes liability, the claim falls out of this process.
What is the maximum time allowed between Stages 1 and 2 of the Ministry of Justice’s RTA claim portal for the claimant to gather medical evidence?
There is no fixed time period
After receiving a settlement pack, how long does the defendant have to respond?
15 days to either accept or send a counter offer. If the offer is rejected there is a further 20 days for the 2 parties to negotiate
What are the costs for stages 1 & 2 of the Ministry of Justice claim process for low value RTA injury claims?
Between £1000 & £10,000;
- Stage 1 - £200
- Stage 2 - £300
Between £10,000 & £25,000
- Stage 1 - £200
- Stage 2 - £600
If a personal injury claim is clearly expected to exceed £25,000 then it is dealt with in line with the Civil Procedure Rules. How long does an insurer have to respond from the submission of a claim?
90 days
A total loss claim occurs when the cost of repairing the vehicle exceeds:
The pre-accident value of the vehicle, taking into account the salvage value
What general insurance pricing practice rules applies to commercial insurance products as well as motor and home products?
New product governance rules to ensure customers in the target market get fair value for money from their insurance products
What is typically the longest amount of weeks a policyholder will have to wait before the insurers deem a vehicle permanently stolen?
6 weeks
What happens if a vehicle is recovered after a settlement payment has been made to the policyholder?
It will either be treated as salvage belonging to the insurer or the claims money will be re-paid in full and the vehicle revert to the insured’s ownership
Which databases are linked to The Motor Insurance Anti-Fraud and Theft Register (MIAFTR)?
Hire Purchase Information (HPI), Police National Computer (PNC) & DVLA
Who operates and controls the data for the MIAFTR?
The MIB
What is the notification condition on an insurance policy?
A condition stipulating that the insurer must be made aware of any event that might lead to a claim as soon as reasonably possible
What must an insurer be able to prove before then can apply the ‘reasonable care’ condition on a policy?
That the policyholder has demonstrated a high level of ‘reckless disregard’ for the property and that this was something that contributed to the loss
What will an insurer provide if a courtesy vehicle is not available while the insureds vehicle is in for repairs?
Money so that the insured can put toward the cost of taxi fares or other alternate travel arrangements
