Car insurance fronting is the new fraud
Studies conducted by the Motor Insurers and major Car Insurance company Aviva have revealed something interesting pertaining to UK drivers. While close to 70% of them are unaware of the term ‘fronting’, 20% of those who are aware of the term have admitted that they indulge in it. That is quite disturbing.
The term ‘fronting’ refers to the situation when somebody different from the actual driver is falsely declared as the holder of the insurance policy. This constitutes a fraud and could lead to the policy getting null and voided. Some of the drivers however feel that ‘fronting’ is allowed to take place due to a legal anomaly and will continue to happen till this is plugged.
However, almost 10% felt that resorting to ‘fronting’ is okay to get cheaper car insurance, though over 90% agreed that it was not the correct social practice. The study also revealed problems of clear understanding among the drivers about the scope of insurance and how providing accurate information is very important to get the benefit of full motor car insurance.
In fact some of the drivers even believed that they would get the benefit of insurance even if they presented a ‘fronted’ policy and that we know is not the case.
published:
21/03/2010 15:00:00
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