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“Insurance helpers”: why it’s better not to trust them with your money

The activities of unscrupulous “helpers” have been gaining popularity in the insurance market in recent years. People resort to their services most often to receive insurance payments for compulsory vehicle insurance in case of an accident. Fingramota.kz (the regulator’s website) reports how insurance intermediaries operate.
“Insurance helpers”: why it’s better not to trust them with your money

Vehicle insurance is the most popular insurance product. It is not surprising that disputes between drivers and insurers sometimes arise about the amount of payments after an accident. As a result of the conflict of interest, intermediaries appeared providing services for a certain commission of the insurance payment.

So-called traffic lawyers act on the side of car owners and, try to increase the size of insurance benefit after an accident through the courts. The argument is built around the difference in assessing the cost of vehicle parts and (or) its repair. The actions and methods of insurance intermediaries are effective at first glance. The court may decide that the insurance company must make additional payments. According to the court office, its size, if successful, is 10 or even 20% of the main payment. However, remuneration for the services of individual insurance intermediaries can reach 30-50% of the insurance payment amount. By winning the court and paying the fee to the mediator, the car owner, at best, will not lose anything except time. More often, they lose part of the insurance benefit that they would have received without the intervention of third parties.

During the hearing procedure and according to the testimony of individuals in court, beneficiaries report that they are unfamiliar with the institution of the insurance ombudsman and they turn to intermediaries on a paid basis.

In fact, the “helpers” without actually providing legal or consulting services and by misleading people take up to half of insurance benefit due to the beneficiary by law. Unscrupulous “helpers” enrich themselves at the expense of citizens.  Such services have turned into a proven scheme for obtaining easy money, where the number of people who have not received payments is growing from year to year. As a result, the activities of such “helpers” not only cause financial damage to people but also undermine confidence in insurance, since “helpers” give the impression that it is difficult to receive insurance benefit without their help.

There are often cases when, after a fatal accident, “helpers” turn to the relatives of the injured, promising to assist in obtaining money from the insurance company. Dependent children or parents of the person killed in an accident are entitled to insurance payment in the amount of 2,000 MCI or 7.4 million tenge (MCI for 2024 - 3,692 tenge) by law. “Helpers” enter into an agreement with them and issue a power of attorney to receive the insurance claim. Mediation services in this case come down to the transfer of documents from the victim’s relatives to the insurance company. The intermediaries keep half or more of the amount for themselves, and this is not commensurate with the volume of services provided. We would like to clarify that there are no commissions or fees for insurance payments made by insurers.

We call people’s attention to the fact that upon the occurrence of an insured event, the insurance organization is obliged to make insurance payout in the amount, manner and terms established by the current legislation in the field of insurance. In case of fatal accidents, the right to receive a lump sum payment is available to the dependents of the deceased person: children or relatives who are dependent on him, a person entitled to compensation for damage in connection with the death of the victim.

According to legislation amendments, starting from the year beginning, Kazakhstanis must contact the insurance ombudsman to resolve disagreements with insurers before going to court. Thus, from January 1, 2024, an applicant who has an unresolved insurance dispute must contact the insurance ombudsman to resolve it. This innovation has significantly facilitated the procedure for people to resolve disputes with insurance organizations.

Source: https://fingramota.kz/ru/news/post/strahovye-pomogajki-pochemu-im-luchshe-ne-doveryat-svoi-dengi

Photos are from open sources.

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