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Abuse of corporate insurance policies on the rise

  • Company car drivers are admitting fault too easily
  • Fleets urged to utilise tech even if driver admits fault
  • Your no claims bonus is at risk

Drivers are routinely incorrectly accepting responsibility for accidents, according to fraud specialist, Asset Protection Unit (APU).

By using telematics, accident reconstruction technology and its own bespoke forensic techniques, APU has identified an increasing number of insurance claims that showed the driver is not at fault, even though they claimed to be.

According to APU, drivers are most likely to be working and pushed for time when accidents happen on the road, so they are perhaps even more likely to admit fault quickly in order to get on with their day.

However, if you think that your No Claims Bonus will remain unaffected, you would be wrong. According to the firm, the most common misuse of fleet insurance cover comes when drivers accept fault prematurely or falsely because they wrongly think their personal No Claims Bonus will not be affected, which is not actually the case.

The trend is believed to result from a lack of awareness and results in corporate insurance premiums increasing. 

In a recent APU case, six personal injury claims topping a total of £32k were dismissed after an In-Car Cleverness telematics device contradicted the driver’s account of the accident. The device was installed on the car of the individual who claimed fault for the accident. 

Neil Thomas, director of Investigative Services at APU, said: “After an accident, determining fault is often complex and is reliant on the drivers’ versions of events. Any business with a fleet of vehicles knows how hard it is to keep its drivers safe, avoid accident disputes and prevent an often large insurance premium from rocketing.

“Some drivers simply don’t know that accepting liability on their corporate policy usually hits their own private insurance. Others, unfortunately, accept liability if there is a cash incentive to do so,” concluded Thomas.