Menorca insurance fraud: agent held over €100,000
Customers in Maó, Menorca, may have been left driving without valid compulsory insurance after money paid for cover allegedly failed to reach the insurer. National Police arrested an insurance agent on 21 September over suspected insurance fraud involving more than €100,000. The man had worked for more than 10 years as the exclusive agent for a Menorca insurer, arranging policies, life insurance and investment plans.
The investigation began after several complaints were made at the National Police station in Maó. Police say the agent did not pass on customers’ premium payments, leaving many policies cancelled for non-payment. In some cases, both the agent and the insurer collected the same payment.
Investigators also found that insurance policies had been taken out in the names of people who did not know about them or agree to them. Police say the agent made unauthorised withdrawals from customers’ accounts linked to life insurance and investment products.
The cancelled policies caused serious problems for those affected, according to police. Some received traffic fines for driving without compulsory insurance, while others faced late-payment charges, no cover after an incident and costs arising from accidents.
The insurer has so far taken on more than €7,000 linked to fraud reports from several customers. Police say the overall amount is considerably higher, with other cases still awaiting formal claims.
National Police have urged anyone who arranged insurance or financial products through the agent to check that their contracts remain valid. Those who spot an irregularity or suspect fraud should report it at the National Police station in Maó.
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Source: Europa Press / Mallorca.com