Low Mineral Values Fuel Insurance Fraud

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Low Mineral Values Fuel Insurance Fraud
12 May 2010, 1:59 am



Jita, The Forge - The prolonged depreciation in the value of common minerals has fueled the practice of 'insurance fraud'.

'Insurance fraud' is considered to be the action of a capsuleer willfully destroying a newly insured vessel to collect its insurance value. With current low prices for minerals, a ship can be built or acquired significantly below its insurance value and the subsequent self destruction of the insured ship can yield significant net gains.

Alica Wildfire of Federal Investigation Agency believes that a pilot can earn about 150 million ISK an hour by self destructing an insured ship every two minutes.

Many industrialists fear that if insurance rates are tied to mineral prices, the change would likely trigger massive deflation.

"The deflation will come. I can't say how dramatic it will be but my guess is we will see a crashing market soon... [it] Means poverty for the masses," concludes Alica Wildfire.


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