Analysis On Automobile Insurance Fraud And Construction Of Countermeasure

In recent years, with rapid economic development and the improvement ofpeople’s living standards, the total vehicle continue to increase, the process ofmotorization speeds up, at the same time, the motor vehicle insurance business hasalso experienced rapid development. But, with the rapid development of the autoinsurance market, the phenomenon of the cheat of auto insurance such as Pengci isincreasing. According to the china insurance regulatory commission data show that,each year, the amount of auto insurance in china of the cheat of auto insuranceoccupies a large part of the total claims. Pengci,this kind of insurance fraud,not onlybrings huge economic losses to the insurance company, but also damages the interestsof other policyholders, more importantly, influences the healthy development of theentire insurance industry, undermines the order of the insurance market, and even theeconomic order of society as a whole. Therefore, in order to regulate the insurancemarket and promote its healthy and orderly development, we need to solve theproblems urgently.Although China’s insurance industry has developed rapidly, laws andregulations and institutional infrastructure can’t keep up with it. Because theinformation of the policyholders is not shared, insurers are in the position of theasymmetric information. Deficiencies in the system of the insurance company internallead that the prevention of Pengci is very difficult. the article discusses the content of Pengci in four chapters and comes to the policy of prevention.The first chapter points out related content of Pegnci by case analysis, and leadsto the origin of the word Pengci, the extended meaning of contemporary society andthe definition of insurance fraud.Chapter Ⅱ analyses the insurance theory of Pengci, including informationasymmetry, uncertainty and compensation. The information asymmetry between theinsurance company and the insurers induces moral hazards. The insurance company isin the position of information disadvantage. The situation leads that the insurersprovide false vehicle information. The insurance contract itself has uncertainty, andinsurance compensation is not identified. This is the main reason of moral hazard.Compensation principle as one of the most important principles in the insurance legalrelationship runs though the process.Chapter Ⅲ analyses the nature of Pengci case, discourses the characteristicsincluding the hidden nature, multi-party collusion and serious harm to society, themeans of using others’ bad habits and gang committing the crime and the forms ofover duplication of insurance, over-insured and high compensation by low risk.Chapter Ⅳ analyses all the reasons including root reasons, objective reasons,subjective reasons and institutional reasons one by one. It discusses the adverseeffects of Pegnci, compares the status quo of the foreign auto insurance fraud. We canlearn from the advanced experience. It proposes laws formulating, insuranceinformation sharing, system improvements of the insurance company, and theestablishment of the agency of anti-insurance fraud. We can prevent Pengci cases bythese measures.