How You Can Avoid Fleet Fraud

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How You Can Avoid Fleet Fraud?
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Quite often, the fleet managers are looking for
an insurance policy that makes them sure that
their fleets have the right coverage. They are
trying to determine the risks that can
potentially increase their vehicle insurance
costs. For this, you are required to have the
right insurance broker that would provide
insurance, employee benefits, and bonding to the
industry.
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For any business operating vehicles under a Motor
Fleet Insurance policy, it is significant to
determine to an insurer that adequate fleet
procedures are in place to minimise costly risks
-including occupational fraud.
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Fleet Management Programmes
Fleet management programmes usually include a
fleet safety policy and are more successful at
preventing fraud when they cover the following
areas
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Management commitment
This includes a clear managements role and
commitment to detecting and prevent fraudulent
claims. A lot of culprits caught because of the
illegal conduct only because they perceive that
they would be escaped.
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Written Policies and Procedures
Everything must be clearly stated in a written
policy highlighting all permitted and prohibited
driver behaviour, along with proper procedures to
follow in the event of an accident.
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Driver Agreements
Getting a drivers commitment to the documented
policy will help you confirm all policies and
procedures that will help discourage unusual
behaviour. By developing a perception in
employees' minds that their illegal acts will be
detected, this step will help an organisation to
deter occupational fraud.
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Driving Records Checks
Make your drivers sure their records are being
checked repeatedly, sometimes the Driver and
Vehicle Licensing Agency (DVLA) register records
and share with the consent of the driver with the
organization that demonstrates the relevant need
for the information.
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Crash Reporting and Investigation
Make sure to conduct thorough investigations of
each claim providing forms for employees to
complete in the event of an accident. Any injury
claims or staged accident by an employee means
that the increased insurance premiums as well as
the expensive pay-outs. Therefore, its essential
that your business takes steps to prevent and
detect employee fraud.
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Internal controls and anti-fraud measures should
be customised for each individual organisation
depending upon their unique characteristics. In
addition, stay alert for the red flags such as
driver with a history of prior accidents of
similar circumstances, a driver with multiple
past claims with the same solicitor, driver that
shows familiarity with the claims process and
claim evaluation as well as if an overly
enthusiastic witness present at the accident
scene.
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Keep in mind that having a driver or vehicle in
your fleet that is particularly prone to
accidents, it will affect the cost of your fleet
insurance cover.
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