Buying Fake No Claim Bonus: Risks and Consequences
No claim bonus (NCB) is an indicator of accident-free driving, which is calculated for each driver based on data on insurance payments for accidents that happened through his/her fault. It reflects the risk of an insured event and affects the cost of the insurance policy. The longer you drive without accidents, the lower the NCB.
Is No Claim Bonus worth it?
The main purpose of these systems, in addition to increasing the interest in safe driving, is to better account for individual risks so that everyone ultimately pays premiums that match their own incidence rate.
The fact that No Claim Bonus certificates are practiced in most countries is an acknowledgment that the individual characteristics of drivers play a significant role.
Developing a No Claim Bonus system is an extremely important practical task for the current generation of non-life insurance actuaries. Insurance markets around the world are becoming more and more open. In many countries, insurers have the freedom to design their own systems and choose their own variables.
Thus, No Claim Bonus certificates have become an important marketing element used to attract and retain the best drivers.
No Claims Bonus fraud
An increasing number of drivers are resorting to buying a fake No Claims Bonus. Most often, by paying a small amount, the car enthusiast really gets the same NCB, but, of course, he or she is not warned of the possible consequences.
As you know, insurance companies do not always transfer correct information about the client’s vehicle size. The reason is the banal carelessness of managers; there is also a negligent attitude towards their duties.
Under a recently concluded contract, the discount can be restored through an insurance company that made a mistake when transferring data about the driver. It is enough to fill out an application on the car insurer’s website and wait a little. But in some cases this method cannot be applied:
- The contract with a mistake was concluded a long time ago, say, five years ago, and the insurer managed to delete information about it;
- The insurance company has closed due to license revocation or bankruptcy;
- Managers ignore the client’s statement.
It’s a shame to lose your accumulated discount for years because of someone’s negligence. Moreover, if you can buy a fake No Claims Bonus.
The service is provided by many sites, none of which is directly related to any insurance company. However, it is obvious that current employees of auto insurers are involved in their creation and operation.
The question arises: how can employees of insurance companies manage to pull off a trick if the driver has a valid insurance policy or does not have insurance?
It’s simple: the data is falsified. Most often, the driver in the database is “entered” into someone’s policy with the “correct” No Claims Bonus. As a result, he or she gets the opportunity to take advantage of a discount on all auto insurance policies.
Is it legal to buy a fake NCB?
There is only one legal way to restore NCB – contacting an insurance company that made a mistake when transferring information to a single database. Accordingly, buying fake NCB is illegal. What are the possible consequences?
Today, an increasing number of car insurance policies are issued via the Internet.
Let’s say the insurance company became aware of the illegal change of NCB. The client will not be able to prove the legality of this procedure at all will. The payment was understated, and the driver provoked an accident, as a result of which someone else’s property was damaged, for example, a car.
The insurance company will pay compensation to the victim or arrange for the repair of his/her car at its own expense. Then the insurer will demand from the person responsible for the road accident full compensation for the costs incurred in restoring the victim’s car.
It is impossible to get away from the recourse requirement. In the best case, it will be possible to slightly reduce the size of the requirements provided that there is evidence of the fact that the cost of restoring the car is overestimated.
How can an insurance company find out about a fake NCB?
Until buying a fake No Claims Bonus has gained popularity, insurers are not engaged in targeted verification of its legality. However, in some cases, the claims department may still conduct an audit.
You can always find out who exactly changed the NCB in the insurance database. And it will certainly be revealed that the change was made by the wrong company that had the right to do so.
Accordingly, upon the occurrence of an insured event through the fault of the driver who bought a fake NCB, the insurer will present him/her with a recourse claim.
In the future, when the number of people willing to buy a fake NCB will increase, auto insurers will most likely purposefully conduct an inspection when an insured event occurs. One must remember that auto insurers constantly complain about unprofitable car insurance, therefore they will not miss even a meager chance for a refund.
And it is not known how the government and U.S. courts will behave. Yes, most often they take the driver’s side, but in this particular case, there is a possibility of the opposite.
The only way to protect yourself from the risks associated with buying a fake No Claim Bonus is to use only legal measures.
Tags: NCBS, no claim bonus certificate