EMERGING FRAUD ALERT! Spare parts that will hurt innocent motorists and the public

I know how to smell trouble. I see trouble in motor vehicle repairs. From what I have heard from people who have lately gone to repair accident vehicles, there is a problem. I am told insurance companies have opted not just to do insurance business but also supply parts to garages.

This is sickening. I’m told this is to help them stop fraudulent activities from the motor insurance claims. What a waste of time! Fraud begins from within, not without. Go look for any forensic report (and there are many) and read about fraud.

Some are even public. Big fraud is committed by people with power or those with significant positions or in strategic positions. So, if there are many fraudulent claims, insurance companies should start checking their systems.

The problems begin there. It is said insurance claims is one of the avenues used by rogue managers or employees of insurance companies to siphon money or steal. At times, I shudder when I see us blaming Government officers for corruption.

There are many corrupt fellows in private businesses. Why do we see every now and then that banks and supermarkets have lost so much money from fraudulent activities? The same problem is in insurance companies.

They have logs to peel from their eyes. They are conveniently finding excuses in service providers such as garages, assessors, brokers and agents. These guys have a problem.

I doubt if they know that for a long time they have struggled with a bad reputation. They mis-sell their products, they do undercutting and do bad investments and then come crying wolf. I think our nation has serious integrity challenges.

Let me ask, when these insurance companies start supplying parts, are they not opening floodgates for corruption?

Are they not giving some of their employees and crooked people out there an opportunity to fleece them?

What will prevent bad employees from setting their own networks to be the ones supplying the said parts even through proxies?

What will prevent collusion between insurance companies’ employees and the spare parts dealers, some who could actually be criminals in the first place? Is this the direction insurance companies want to go?

Some of these companies look reputable enough to get into this kind of rogue networks. What happened to the use of garages to guarantee quality service? You can be sure in attempts to cut costs and cut corners, the public will be the loser here. The dangers they are getting exposed to will impact negatively on the overall economy. It is time for insurance companies, just like banks, to style up.