How not to make an insurance claim

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If you think social media is a platform purely to communicated with friends and family, think again. For the past year, insurers have been using social media to assess the validity of claims, especially large ones. Some insurance companies have even rejected claims based on information posted to Facebook.

Many consumers share false information with insurance companies when it comes to claims, some also present incorrect information about the regular driver, of an insured vehicle, to pay lower premiums. It’s difficult to give an average premium on a car as there are many factors to take into consideration like whether the consumer is male, or female, married or not, age, and more, but for the sake of an example, let’s take a Hyundai i30 valued at R250,000. The driver of this car is a married female over the age of 25. Her premium would be R617, but the premium for a single male under the age of 25 for the same car would be R954. That’s why many parents say they are the driver of their children’s cars when it comes to insurance. 

Social media has become a useful tool to assess correct and true information.

Deanne Wood from Ombudsman for Short-Term Insurance (OSTI) said, “Our office sees far too many claims being submitted where, for example, parents have represented that they will be the regular driver of a vehicle when in fact the vehicle was purchased by them for and use by their child.” She continued to say, “Paying the lower premium is all well and good until a loss is suffered. Simple desk-top investigations using Facebook or other social media searches can all too easily reveal misrepresentations made by consumers who forget to cover their tracks when making misrepresentations to their insurance companies.”

According to Moneyweb, an insurance professional said that his insurance company rejected a claim relating to an accident of a luxury motorcar. The claim was rejected as information provided through his personal Facebook account revealed his drunken state while driving.

All information posted on public social media accounts are accessible worldwide (apart from countries like China where those platforms are banned). This means insurers are able to view your whereabouts, those you were with and find facts on any incidents you’ve been involved in. With the purpose of uncovering truths, some insurers have even spoken to friends and family tagged in a claimant’s post.

I guess the moral of this post is honesty. It goes a long, long way. 

Published by Candice Leigh King

We discovered that there was an ongoing cycle of trauma occurring that would cause major setbacks in businesses, and quite simply we didn’t enjoy seeing individuals suffering as greatly as they were especially after paying a monthly premium. We realised we could deliver a service that would change the outcome of a catastrophe by ensuring an impartial claim. JSib is a noble brokerage founded on the idea of a normal business day even after devastation occurs.