Third party claim spoils credit score

Image: www.pixabay.com

If you had an accident and made a third party claim against the person's insurance company who damaged your car, you may be having adverse information on your claims enabler report.

The claims enabler is a separate report that is kept on the Transunion Credit Bureau platform along with a consumer's credit record.

This adverse information has an effect of increasing your current and future premiums with your prospective insurance company, said an aggrieved consumer.

As a result, this item on the insurance data system (IDS) is on SA Insurance Association (SAIA's) agenda for discussion at next meeting.

Consumer Line has seen an e-mail in which SAIA confirmed that the person responsible for the IDS is looking at the information which is loaded onto the platform by its members, especially in relation to third party claims, and how it can negatively affect consumers.

Gareth Miller, 41, of Sandton, claims that he had a rude awakening four months ago when he discovered that he had two claims against his name listed on his insurance claims enabler report, kept with Transunion, dating back to his third party claim in 2016.

Miller only had one accident but his report shows two accidents on the same day, he said.

The claim amount is also inflated and reported by Auto and General insurance even though he was not with any of the Telesure companies at the time of the accident, he said.

Miller said he lodged a claim with Paladin Underwriters Managers as his car was damaged by their client.

One month after the accident, Miller joined Budget Insurance and requested a letter of comfort from them to state that he would not make a claim with Budget Insurance as he had chosen to pursue the third party claim with Paladin Underwriter Managers, who promptly settled the claim.

He said Paladin paid him R18,845, however, the claims enabler report currently shows two insurance claims that Auto and General listed against his name to the value of R31,500.

Miller said this misleading record could lead to increased premiums, which may have affected thousands of consumers who are not aware of what is being done to their claim's enabler report after they had successfully claimed from a third party's insurance company.

The incorrect information states that R27,500 was for the repairs to his car, and the claim status shows 'repudiated", and R4,000 is for car hire which shows status as "registered".

Miller said he wondered why his insurance premiums were so high, and just recently was quoted R1,600 per month to insure a Hyundai i10.

He then took this up with the Telesure Group which admitted that it was unfair to load inaccurate and exaggerated information on his profile as it could be used wrongly by prospective insurance companies, he said.

Telesure group consist of Auto and General, Budget Insurance, Dial Direct, First for Women, Virseker and Hippo.

"They also confirmed that this is how they loaded information for all their customers who have had a third party claim against the Telesure group," Miller said.

He said the information was kept by the Transunion Credit Bureau on what they called the claims enabler report of insurance data system, which was only accessible to insurance companies.�

He said as soon as they removed the adverse information from his records the R1,600 premium that he was quoted dropped to R1,050.

"I think it is in the best interest of everyone whose third-party claims have been adversely affected to be warned about this and call on Telesure and Transunion to provide them with their claims enabler report that has been listed on their profiles," Miller said.

"Last month they then offered to pay back 12 month's premiums totalling R17,500 even though I have been with them for only five months."

Miller declined the offer.

"No insurance company this large, makes mistakes like this,"he said.

X