OREANDA-NEWS. November 23, 2009. Fast response of relevant departments of Ingosstrakh IJSC over 9 months of 2009 helped prevent 849 insurance fraud cases, which is by 310 cases more as compared with last year. The company prevented illegal payments for the total amount of RUR347 million.

Automotive insurance continued to have the highest level of fraud. Next come mortgage fraud and fraud with leased or bought on a loan property or equipment. There were also some cases of damage by fire to pledged property caused by arson.

Ingosstrakh statistics demonstrate that fraud cases are prevented not only in Moscow and Saint-Petersburg, but in other Russian cities as well. For example, swift response of the Data Analysis and Security Department of Ingosstrakh in Voronezh prevented a large insurance payment fraud of RUR 3 053 899. An investigation of a BMW X6 traffic accident discovered that Mr. P., who had been driving the car at the moment of the accident, got insured only three days after the accident. A mortgage fraud case was solved in Kemerovo, preventing insurance payment of RUR 932 234. Testimonies of a real estate agent, neighbors and former owners of an insured real estate property showed that the house had already had defects at the time of sale, of which the insured party was aware when making the claim. The property was bought for future demolition and new construction. Ingosstrakh filed an application with a local police precinct to hold the customer criminally liable.

At present, law-enforcement authorities in a number of Russian regions are investigating several criminal cases as initiated by Ingosstrakh. The corporate Data Analysis and Security Department has been supporting communications, consulting investigation officers to provide complete and accurate information in order to determine the nature of crimes and danger posed to the society by the suspects. In 9 months of 2009 there have been 19 criminal cases initiated at Ingosstrakh’s request, and the figure is two times higher than over the relevant period last year.

According to Alexander Guliayev, Director of the Data Analysis and Security Department Ingosstrakh IJSC, there is a significant (87,7%) rise in numbers of the so-called "petty" insurance frauds (i.e. false claims for amounts less than RUR600 thousand). There is no reason to believe that this trend will change anytime soon. This makes it vital for major insurance companies with extended regional networks to have special officers to combat insurance fraud in their regional offices. Those insurance companies that fail to set up such specialized units are at a risk of making larger insurance payments on minor false claims. In the long ride this may lead to damages to their retail business and create issues with meeting their obligations to their customers.