PALOS HILLS, III. - Special insurance industry teams will be assisting law enforcement and insurance companies in identifying and cataloging vehicles damaged by Hurricane Katrina to prevent their fraudulent resale to unsuspecting consumers in the future.
Robert M. Bryant, president and CEO of the National Insurance Crime Bureau dispatched special catastrophe teams to Baton Rouge, La., and Mobile, Ala., in mid-September. The effort is expected to last from six months to a year.
Authorities estimate that thousands of vehicles have received damage from flooding in the New Orleans area alone. That number is expected to grow as claims from Mississippi are processed.
Bryant explained that unscrupulous salvage operators and dealers often try to conceal the fact that vehicles have been damaged by a natural disaster from potential buyers.
"By creating a registry of damaged vehicles now, the potential for this type of fraud can be greatly reduced," he said. In addition to vehicles, NICB is also alerting disaster victims to be aware of the potential for fraud that exists as efforts to repair and rebuild get underway.
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