What is the proportionality test for fraud registration?
Brief definition: The proportionality test determines whether registration in a fraud register (such as EVR or IVR) is proportionate to the severity of the conduct. An 8-year registration for a minor irregularity may be disproportionate. Insurers must make this assessment based on the Incident Warning System Protocol.
When is fraud registration disproportionate?
A registration may be disproportionate if:
- The severity of the conduct is minor compared to the consequences
- There was no intent, but merely a mistake or misunderstanding
- The damage amount is low (e.g., a few hundred euros)
- You have no prior registrations
- The personal consequences are excessive (e.g., being unable to obtain a mortgage)
- The registration lasts longer than necessary for the purpose
The Incident Warning System Protocol
Insurers must follow the Protocol when registering:
Requirements for registration
- Determination that fraud has occurred
- Proportionality assessment by the insurer
- Notification to the person concerned with opportunity to object
- Documentation of the assessment
Duration of registration
- Standard: 8 years in the Incident Register
- External registration (EVR): maximum 8 years
- Reduction possible in case of disproportionality
Factors for the proportionality assessment
The insurer must consider:
Severity of the conduct
- Was there intent or gross negligence?
- Was it active deception or an omission?
- How high was the (potential) damage amount?
Personal circumstances
- Age and financial capacity of the person involved
- First offender or repeat offender?
- Special personal circumstances
Consequences of registration
- Impact on ability to obtain insurance
- Consequences for mortgage or other financial services
- Implications for profession or business
Objecting to disproportionate registration
Step 1: Object to the insurer
Submit a written objection and request the proportionality assessment. Argue why the registration is disproportionate in your case.
Step 2: Complaint to Kifid
Kifid assesses whether the insurer made a correct assessment. Various rulings show that registrations are shortened or removed in cases of disproportionality.
Step 3: Civil court
If Kifid is not competent or you disagree with the ruling, you can go to civil court.
Kifid rulings on proportionality
Kifid has determined in various rulings:
- 8-year registration for one-time minor fraud may be disproportionate
- Registration of minors requires extra careful consideration
- With minor damage and no prior registrations, reduction is appropriate
- The consequences for the person concerned must be considered
Frequently asked questions about proportionality test for fraud registration
What is a proportionality test?
A proportionality test is the assessment of whether the severity of a measure (registration) is proportionate to the seriousness of the conduct. The insurer must make and document this assessment.
How long does a fraud registration normally last?
The standard registration period in EVR and the Incident Register is 8 years. This can be shortened to, for example, 3 or 5 years in case of disproportionality.
Can I request a reduction of the registration period?
Yes, you can request the insurer to shorten the period based on proportionality. Explain why 8 years is disproportionate in your situation.
Must the insurer share the proportionality assessment with me?
Yes, under GDPR you have the right to access the data and the justification for the registration, including the proportionality assessment.
What if no proportionality test was conducted?
If the insurer did not make or made an insufficient proportionality assessment, this may be grounds for objection and removal of the registration.
Where can I get help with disproportionate fraud registration in Utrecht?
A lawyer specializing in insurance law can help you object to disproportionate registration. Contact us for advice in Utrecht.