Be Aware of Employee Fleet Fraud
Did you know Employee fraud claims cost companies like yourself billions each year?
Fleet fraud specifically is costly, falsified and inflated claims are very costly. Staging an accident or injury claims by an employee mean increased insurance premiums and vast pay outs. It is paramount that you and your business take preventive measures to detect employee fraud! Internal controls and anti-fraud measures can be bespoke in design for your organisation to ensure that any suspect behaviour can be stopped as soon as possible.
When hiring new staff make sure to watch out for these red flags…
- A driver with a history of prior accidents in similar environments
- A driver with numerous past claims with the same legal representative
- A driver that shows a familiarity with claims processes and evaluations
- An overly excited witness present at an accident scene
Download your editable PDF daily vehicle checklist to help you. Click on the link below.
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Fleet management programmes that include a fleet safety policy are most successful at preventing fraud when they cover the following areas…
- Management commitment: Clearly define management’s role and commitment to preventing and detecting fraudulent claims. Most perpetrators of fraud engage in illegal conduct only when they perceive that they will not be caught.
- Written policies and procedures: All permitted and prohibited driver behaviour, along with proper procedures to follow in the event of an accident, should be clearly listed in a written policy.
- Driver agreements: Documenting a driver’s commitment to conform to all policies and procedures can help deter aberrant behaviour. If an organisation increases in its employees’ minds the perception that the illegal acts will be detected, it deters occupational fraud.
- Driving records checks: Verify that drivers have the proper entitlements to drive. Also, sometimes DVLA register records can be shared, with the consent of the driver, with organisations that show a demonstrable and relevant need for the information.
- Crash reporting and investigation: Conduct thorough investigations of each claim. Provide forms for employees to complete in the event of an accident.
- Vehicle selection, maintenance and inspection: Conduct regular inspections to demonstrate Trevellyan Insurance’s commitment to preventing accidents and fleet fraud.
- Disciplinary action system: Make the serious repercussions of fraud clear, including legal action and termination. Adopting concealed internal controls may assist in detecting fraud, but it generally does not prevent it because employees are unaware of their presence and potential detective ability.
- Reward and incentive programme: Reward employees for good driving habits and lack of accidents and claims.
For any business operating vehicles under a fleet motor insurance policy, it is important to demonstrate to an insurer that adequate fleet procedures are in place to minimise costly risks—including occupational fraud. For more information about controlling insurance costs, contact Trevellyan Insurance today.
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