Insurance fraud and proving the amount of damages during wartime in Ukraine

 Solomiya Boyar's idea

Insurance fraud and proving the amount of damages during wartime in Ukraine are significant challenges that need careful consideration. The recent increase in fraudulent activities, particularly in the insurance sector, has become a cause for concern given the ongoing conflict in the region. This situation has led to a rise in individuals attempting to unlawfully claim insurance payouts.

Understanding the nuances of insurance policies, especially concerning damage assessment and proof, is crucial in such turbulent times. When evaluating damages in insurance claims, several critical factors must be taken into account.

The terms and exceptions outlined in the insurance contract play a significant role in determining the eligibility for payouts. It's important to note that the declaration of martial law alone does not automatically disqualify a case from insurance coverage.

The core principle governing insurance compensation is that it should not surpass the actual direct damages suffered by the insured party or other affected individuals, as specified in the insurance agreement. Direct damages include losses stemming from property destruction or damage, as well as expenses needed to restore violated rights.

Proving the precise amount of direct damage, especially in scenarios involving military operations, requires a methodical approach:

Event Identification: Understanding the nature of the event that caused property damage or destruction, specifying the type and extent of the damages incurred.

Evidence Collection: Gathering substantial evidence such as photographs, videos, or official reports documenting the damage or destruction of property.

Expert Assessment: Engaging in expert evaluations of damages, potentially involving a detailed list of necessary repair works and estimated costs for restoration.

Official Documentation: Obtaining critical documents like the Damage Act from local authorities or military-civilian administrations, which serve as primary evidence of the damage incurred.

Witness Testimonies: Seeking testimony from witnesses along with a signed inspection certificate validating the incurred damage.

Additionally, the involvement of appraisal reports is crucial. These reports, conducted by independent entities, provide comprehensive assessments of damages and aid in accurately determining the compensation amount. Adhering to the Methodology for determining damages caused by external aggression, as outlined by relevant Ukrainian laws and orders, ensures a fair evaluation process.

For enterprises and organizations grappling with property damages due to conflict, seeking the expertise of accredited bodies like the Chamber of Commerce and Industry proves beneficial. These organizations conduct thorough assessments, including property documentation, value appraisal, and loss profit calculations, forming the basis for future compensation claims.

To address potential challenges with registered property post-conflict, utilizing insurance surveyor services is advisable. These professionals assess insurance risks, recommend risk mitigation strategies, and calculate potential losses, thus safeguarding against uncertainties in the insurance claims process.

In conclusion, effectively navigating insurance fraud and ensuring accurate damage assessment during wartime necessitates a coordinated approach, adherence to legal frameworks, and leveraging expert resources. These practices enable individuals and entities to manage the complexities of insurance claims amidst ongoing conflicts.

Stay tuned for insights on the Statute of the Register of Damages caused by the aggression of the Russian Federation against Ukraine in our upcoming post.