Criminal activities on the websites are becoming a serious concern for everyone and it has become an unstoppable menace throughout the world. These scammers those who do everything with a criminal intent disguise as executives, sales managers and officers and swindle the hard earned money of the public. Though many individuals and corporate houses have escaped from their network few well-flourished organizations have lost millions of dollars to these types of criminals those who operate from different developing countries. Insurance is gaining popularity throughout the world and simultaneously scams related to insurance are also increasingly becoming popular throughout the world. Scams related to fronting is keeping the authorities tizzy and bewildered.
Fronting is nothing but frauds that are related to car insurance policies. The premium rates for the main driver will be quite different from the additional named drivers. It is imperative for the car owner to declare both the main and additional named drivers while take out a policy. It is construed that main driver will do the driving till the time policy expires and additional driver will drive only when the owner is unable to drive it due to exigencies. To put it in a very simple way, the owner of the car should only drive the car and not his children or other third parties. When the owner of the car declares himself as additional driver and declares other experienced drivers as main driver he will be paying lower premium. This in insurance parlance is termed as fronting since the owner has given a different name to get reduced rate of premium.
Insurance companies view fronting as a very serious fraud since they have lost millions of dollars in fronting related claims. But the main problem is proving the negligence in claims related to fronting is difficult and challenging since all the members of the family will drive the vehicle after the owner of the vehicle takes a policy. But the insurance companies look these types of claims from different angel and will catch-hold of the perpetrator red-handed through their time-tested methods. But in many situations the insurance companies were held liable since they were unable to prove the proximate cause of the accident.
Insurance companies should be very serious and show extreme caution while issuing the policies to the customers. Some of the precautionary measures are listed below which will be of great help:
- Check whether the insured is migrating from other insurance companies or he takes the policy for the first time. Insurer should show more caution while accepting proposals from other insurance companies.
- Scrutinize his moral standing and social repute thoroughly and also find whether the proposer has made any claims in previous insurance companies.
- In case of doubts arrange an investigator or surveyor and find out the credibility of the person who is proposing insurance.
- Never accept premium without the proposal form, RC copy and other such documents.
- If you find the person is a perpetrator escalate the matter to the scamming authority or to the police.
Insurance companies around the world are receiving 1000s of claims related to these types of claims. Scams related to business fronting are also hitting the headlines. So, the individuals should check scamming list related to fronting before going forward.