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How microdots can help curb vehicle Insurance Fraud in Kenya

Lost and Found, Microdotting, Recovery Platform

Recently, there have been headlines across the media relating to strategies in which insurance firms have undertaken in response to the losses they have incurred due to scammers defrauding the industry with bogus claims.

Picture this scenario, a high-end motor vehicle is insured multiple times in different companies then later reported as having been stolen or written off due to an accident. Additionally, the original owner of the written off car buys the salvaged car, retains the original log-book and insures the vehicle while it’s in the garage. Due to the lack of a common database that insurers could refer to (in order to know the status of a vehicle) before offering covers, insurers end up settling claims on the same vehicle while the trickster thrives without any interruption.

According to a Daily Nation article dated November 25th, 2018, The Association of Kenya Insurers (AKI) has recently said its members would be active in feeding real-time details of a new motor vehicle being insured, including its previous covers and claims history, into a database known as the Integrated Motor Insurance Data System. Once fully adopted, it is desired that double or triple claims on motor vehicles would be a thing of the past. Despite this, it is in our opinion, here in MaliLock, that insurance companies would still have a challenge in dealing with situations in which fraudsters conspire with assessors and insiders within the insurance industry.

The use of microdot technology on vehicles can be the remedy to this especially since its a model already adapted in a number of jurisdictions that have had this specific problem. Extracting a single Veridot microdot from various parts of suspect vehicles that had been stated as having been in previous accidents can establish when and whether the parts were actually replaced. They can also establish whether a suspicious vehicle has been cloned since the microdots contain details, stored in a central database, that uniquely identify the original vehicle that they were fitted on.

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