Insurance Fraud Scheme Uncovered – Corriere.it
- A growing number of vehicles in Italy,particularly in Naples,are sporting Polish license plates.This trend, highlighted by the Rai program Farwest, is driven by attempts to reduce insurance costs.
- The appeal of Polish plates lies in the important savings on vehicle insurance.
- The process involves registering the vehicle for export to Poland, re-registering it there, and then leasing it back to the original owner.
News from Italy reveals a surge in vehicles using Polish license plates to dodge high insurance costs, notably in Naples, a trend that could be considered a type of insurance fraud. Recent reports by Corriere.it detail how drivers are exploiting loopholes for meaningful savings, sometimes paying only a fifth of the original price. Though, this risky practice comes with potential drawbacks, including claim payment issues adn loss of vehicle ownership. The situation highlights Italy’s expensive car insurance,significantly above the European average,encouraging unethical practices. News Directory 3 is keeping an eye on the story. Discover what’s next for tighter regulations and enforcement.
Polish Licence Plates: An Italian Insurance Dodge?
updated April 30,2024
A growing number of vehicles in Italy,particularly in Naples,are sporting Polish license plates.This trend, highlighted by the Rai program Farwest, is driven by attempts to reduce insurance costs. Naples accounts for 35,000 of the 53,000 foreign-plated vehicles in Italy.
The appeal of Polish plates lies in the important savings on vehicle insurance. In naples, scooter insurance can exceed €1,500 annually. By registering the vehicle in Poland, owners can slash this cost to a fifth of the original price. This makes insurance tax evasion tempting.
The process involves registering the vehicle for export to Poland, re-registering it there, and then leasing it back to the original owner. While seemingly complex,agencies facilitate this process,exploiting legal loopholes,according to Giuseppe Guarino,National Secretary of Unasca.
However, this practice carries considerable risks. Polish insurance companies may be slow or unwilling to pay claims in the event of an accident. Moreover, the original owner forfeits ownership of the vehicle, losing the right to sell or dispose of it freely. Should the Polish company fail, all vehicles could be seized from users.
the situation underscores a broader issue: the high cost of car insurance in Italy. IVASS, the insurance regulator, reports that Italian vehicle insurance is 27% higher than the European average, with prices rising 7.5% in the past year—exceeding inflation. This contributes to an estimated three million vehicles circulating without mandatory insurance, representing 5.6% of all vehicles.
What’s next
Authorities may scrutinize these practices more closely, perhaps leading to stricter regulations and enforcement to combat insurance fraud and ensure fair pricing for vehicle owners.