Preventing fleet fraud

By Wright Insurance Brokers

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Fleet fraud is costly, falsified, and inflated claims cost millions of euros a year. A staged accident or injury claim by an employee can mean expensive pay-outs and increased insurance premiums, so it is essential to take steps to prevent and detect employee fraud. Anti-fraud measures and internal controls can and should be designed and customised for each business based on its unique characteristics.

Stay alert for these red flags:

Driver with a history of prior accidents of similar circumstances.
Driver with multiple past claims with the same solicitor.
Driver demonstrating familiarity with the claims process and claim evaluation.
An overly enthusiastic witness present at the accident scene.

Fleet management programmes that include a fleet safety policy are most successful at preventing fraud when they cover the following areas.

Management commitment: Clearly define 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.
Written policies and procedures: All permitted and prohibited driver behaviour, along with proper procedures to follow in the event of an accident, should be listed clearly in a written policy.
Driver agreements: Documenting a driver’s commitment to conform to all policies and procedures can help deter aberrant behaviour. If a business increases in its employees’ minds the perception that the illegal acts will be detected, it deters occupational fraud.
Driving records checks: Verify that drivers have the proper entitlements to drive.
Crash reporting and investigation: Conduct thorough investigations of each claim. Provide forms for employees to complete in the event of an accident.
Vehicle selection, maintenance, and inspection: Conduct regular inspections to demonstrate the business’ commitment to preventing accidents and fleet fraud.
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.
Reward and incentive programme: Reward employees for good driving habits and a lack of accidents and claims.

For any business operating vehicles under a motor fleet insurance policy, it is important to demonstrate to an insurer that adequate fleet procedures are in place to minimise costly risks—including occupational fraud.

For more information, please call 0818 000 080.

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Howden Insurance (Ireland) Limited trading as Wright Insurance Brokers is regulated by the Central Bank of Ireland. Howden Insurance (Ireland) Limited is authorised and regulated by the Financial Conduct Authority, No. 973308. Registered in Ireland under company registration number 338916. Registered Office: 10 The Courtyard, Kilcarbery Park, Nangor Road, Dublin 22, Ireland. Calls may be monitored and recorded for quality assurance purposes.