In this edition of NICB News we focus on the devastating floods in Louisiana, a major hailstorm in Colorado and check in at this year’s IASIU conference in Las Vegas.
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The August downpours that dumped more than 30 inches of rain in two days on parts of Louisiana have left as many as 100,000 cars and trucks damaged – and that’s only counting insured vehicles.
The National Insurance Crime Bureau (NICB), says claims reporting and vehicle recovery efforts that were initially slowed by the large scale flooding are now in full swing and, according to the state’s Division of Motor Vehicles, the numbers are much higher than originally expected.
Based on the extensive vehicle losses following Hurricane Katrina in 2005, Louisiana enacted strong measures to help protect unsuspecting consumers from buying a flood-damaged vehicle. Once an insured vehicle has been determined by the insurer to have been flood damaged it is towed to one of the auction facilities and processed with a new title that indicates it has been water damaged. In Louisiana, during an emergency like the recent flooding, the severity of flood water damage may require a Certificate of Destruction. In that case, the vehicle has to be crushed, or sold to a company that will dismantle it for parts and destroy what remains. The vehicle identification number (VIN) is entered into the state’s records, NICB’s VINCheckSM, and the National Motor Vehicle Title Identification System (NMVTIS) so that the consumers can check a vehicle history before purchasing a used car or truck.
Flooded vehicles that did not have insurance coverage are a major concern as they are frequently cleaned up to hide the damage and then sold to unsuspecting consumers with no indication of a problem. The number of uninsured vehicles that were flood damaged may be even more than the number of insured vehicles since many owners choose to drop their policy’s comprehensive coverage as the vehicle ages.
“It’s buyer beware,” said Commissioner of Motor Vehicles Karen St. Germaine, who warns those in the market for a used car both in state and across the country to do their homework before putting any money on the line.
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NICB and state officials, including the Louisiana State Police, work closely to pursue possible insurance fraud and vehicle theft. If you suspect fraud, call the NICB Hotline at 800-TEL-NICB (800-835-6422).
Hurricane Sandy has passed, but it will undoubtedly be remembered for years to come as one of the most devastating hurricanes in
history. Reports indicate that it has claimed the lives of 71 people in the U.S. and elsewhere. That number may climb as flood waters recede and clean up begins. Millions are still without power. Countless others have been
left homeless and displaced. Although efforts are already underway in some communities to restore roadways, bridges and infrastructures that were impacted, it may be several months or longer before some areas are able to fully recover. In the meantime, FEMA is providing emergency federal aid for areas affected by the disaster, and humanitarian agencies such as the American Red Cross and Salvation Army are also supporting Disaster Relief efforts.
Many of us across the nation and around the world have probably seen photos and videos of the trail of damage that Sandy left in its path up the Caribbean and along the Northeast corridor of the U.S. And while much attention and focus have been given to the strength of the storm, the true story of this disaster will be the strength and resilience of the people who will begin to rebuild their lives in the days ahead.
While no one can prevent a storm of this nature from occurring, we can help to protect
the public from unscrupulous scam artists who will follow in its wake. It may be unfathomable to think that someone would take advantage of others under such tragic circumstances, but sadly it can occur.
Losing your home, vehicle and other belongings in a hurricane, flood, earthquake, or tornado can be devastating. Although these losses may pose significant emotional distress and financial hardships for you, they present opportunities for dishonest contractors and others to take advantage for financial gain.
If you or someone you know has been impacted by Hurricane Sandy or any other disaster, don’t be victimized twice. Learn how to protect yourself by following these helpful tips from the NICB.