Taxi man hit on the double by insurance fraud
A taxi driver had his insurance policy increased by 346% after a claim was lodged against him which was later found to be fraudulent.
Emeka Agbo received a renewal premium from his insurer, Liberty Insurance, in 2014 for a sum of €949.91. The first monthly payment of €79.16 was due on September 22.
In early October 2014, Mr. Agbo received a solicitor’s letter on behalf of a passenger who claimed he was in a road traffic accident while using Mr Agbo’s taxi.
Mr Agbo informed his insurers of the claim, which he could not understand given that he had not been involved in any road traffic accident.
It transpired that the claimant had travelled in his taxi two months before and appeared to be intoxicated. Before being left off at KFC at Briarhill, the man took photographs of the taxi driver, his identification and the vehicle with his camera phone. Mr Agbo reported the inicdent to the gardai and made a formal statement.
Liberty Insurance carried out their own investigation of the claim and a motor assessor confirmed that the taxi had not been involved in any road traffic accident.
The claims handler engaged by Liberty informed Mr Agbo that they deemed the claim fraudulent and were marking the file as such.
No claim has been submitted to the personal injuries board.
Liberty Insurance wrote to Mr Agbo in mid-October last year informing him that they were doubling his premium from €949.91 to €1873.86.
The father of two was then shocked to receive a renewal premium quote of €4233.62 in September 2015, representing an increase of 346%.
Independent Councillor James Charity said he is planning to lodge a complaint to the Financial Services Ombudsman on Mr Agbo’s behalf.
He is calling for regulations to be introduced which prevent insurance companies increasing premiums until the determination of a claim against the policy, as they were treating their premium holders as guilty until proven innocent.
“This is not the first time I have heard a complaint of insurance companies treating their premium holders as guilty until proven innocent but it certainly represents the largest single increase I have come across in these circumstances,” he said.
“It is clear that there is significant profiteering going on by some insurers who increase premiums in this manner without any payout on a claim and which claims are, in some cases, unjustified and without foundation.
“A premium of €4233.62, despite no successful claim on his policy ever having been made, is placing significant hurdles in the way of him earning a living and is, arguably, against EU Law and the European Charter on Human Rights.”