Drivers in Michigan warned of fraudulent auto insurance


Drivers in Michigan are now staring in the face of another problem. An unlicensed auto insurance company in the state has been issuing fraudulent coverage to a few drivers through an insurance agent who does not carry the license to sell insurance coverage. State officials are warning automobile owners in the state to sit up and make note and opt for coverage from one of the genuine auto insurance providers to avoid getting into problems with the law while driving.

The Office of Financial and Insurance Regulation (OFIR) in Michigan, in one of the recently issued warnings, said that drivers in Detroit may have purchased their auto insurance coverage from an agent called Shaker Uddin Sadeak who has been selling policies for the unlicensed company Al Baraka Enterprise which is based out of Southfield, a suburb in southern Detroit.

According to a press release, agency officials have said that their investigation has unearthed the fact that Saddek was selling auto insurance policies to unwitting customers, by claiming that the policies are being issued by a legitimate auto insurance provider. A customer who purchased the auto insurance policy from this agent said that the policy contained many irregularities, in addition to spelling mistakes.

Al Barak and Saddek have been served the “cease and desist” order by the state officials who have ordered them to immediately stop all their fraudulent activities. The order served to the unlicensed auto insurance provider as well as the unlicensed agent clearly states that they have been offering, negotiating and selling fraudulent auto insurance coverage in this state without the valid licenses. In addition to giving advice about the policy, they also solicited customers, negotiated the rate and also accepted the auto insurance policy premiums from them. The press release has also stated that the results of the investigation have been handed over to the Michigan police for further action.

The commissioner of OFIR has issued a warning to all the drivers who have purchased auto insurance policies through this agent from this auto insurance company. He also mentioned that drivers holding these policies have to buy a new legitimate coverage from other licensed auto insurance providers in the state.