Insurance Fraud
In the past, I wrote specifically about life
insurance fraud, so I thought now I should write about the insurance fraud also,
and what people need to know about insurance fraud. If you missed that post,
then you can Click
here to read about Life Insurance Fraud and how to report it. Let's talk
about Insurance Fraud in general.
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| © Akhil Sharma | AnythingRelated.com | All Rights Reserved |
What is Insurance Fraud and Why Should You Worry?
Any kind action or activity which incorporates swindling
methods as well as fraudulent means to get insurance payouts is identified as
Insurance Fraud. We all know what the term "Fraud" stands for; scam,
cheating, and swindling an individual or a group of people for personal
benefits. Insurance Frauds usually incorporate fraudulent insurance claims. As
per the insurance industry, insurance fraud is common and a lot of these claims
are never recognized, resulting in huge losses for the insurance industry. But,
who is impacted by these frauds? Insurance companies? NO! We, the people! Yes,
consumers of all types or kinds of insurance are forced to pay higher premiums
to cover up the loss caused by insurance fraud. Your increased premium is
directly proportional to an insurance fraud. Obviously, there are many other reasons
of higher insurance premiums, but this one is the primary reason.
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| © Akhil Sharma | AnythingRelated.com | All Rights Reserved |
Soft and Hard Insurance Fraud
Property insurance, health insurance, life, car, and all
other types of insurances could be susceptible to fraud. There are mainly two
kinds of frauds; soft and hard frauds. In soft insurance fraud, a genuinely
active claim is usually overstated or exaggerated. For instance, claiming
additional damage in a car accident and forcing insurance agency to replace
extra damage parts which were already damaged before the accident; I selfish thinking
and cheating leads to the execution of such actions. In hard insurance fraud,
fake situations are often developed to get an insurance payout. For instance,
claiming medical services which were never given. Burning down a house with an
intent of getting an insurance payout is likewise a hard insurance fraud.
How Insurance Companies Identify Insurance Fraud
Insurance agencies use different methods to identify
insurance fraud. When a person submits a claim, the company uses different
techniques to know whether the case is genuine or not. Their computer verifies
signs and other aspects of the claim to check any suspicious or fraudulent
activities involved in the case. If everything looks good on the computer, then
the case is forwarded to another insurance expert who can further review the
claim or refer it to a claim adjuster. The insurance company will deny the
claim if any fraudulent activity is noticed during the investigation. However,
if the case is valid, then the payout will be generated according to the
pre-specified terms of the insurance policy. I have not mentioned many other algorithms
a typical insurance company uses to identify insurance fraud, because that
could help swindlers who are looking for ways to commit insurance fraud.
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| © Akhil Sharma | AnythingRelated.com | All Rights Reserved |
The Struggle of Insurers
Insurance providers, around the globe, struggle a lot due to
scams, and they are affected by fraud since they commenced in business. Many
countries and nations are also trying to fight with such scams; they are
implementing penalties and fines to stop insurance fraud. Many nations already
have strict laws; a lot of countries support insurance agency investigations
with police investigations to expose, prevent, as well as to completely put a
stop to insurance fraud.
Bottom Line
Insurers, sometimes, flag a genuine case also. Sometimes,
people get unfairly denied. What I am saying is these things also happens due
to the strict claim verification procedure. However, a consumer is allowed to
open disputes, if he or she feels that her or she have been declined
unreasonably. Government officials and attorney generals can help you if you
decide to dispute a denied claim.
This is great information. I work for a car insurance company and I run across fraudulent claims all the time.
ReplyDeleteI do sympathize with insurance companies and hope they can minimize the fraudulent claims so that the legitimate claims can be expedited without problems!
ReplyDeleteGreat information! Sometimes we don't realize how insurance fraud can effect our premiums.
ReplyDeleteIt must be hard for insurance companies to weed out the fraudulent claims. It's sad that people even try to get away with things like this.
ReplyDeleteThank you for sharing. I hope that insurance companies can reduce the number of fraudulent claims.
ReplyDeleteYou really have to be careful, there will be fraud on either side sometimes. Insurance companies are also just being cautious especially when people started to come up with fake situations just to get money. This is a very informative post!
ReplyDeleteHelpful information! I have to admit, this is not something I think about on a regular or semi-regular basis so it's good to be reminded that this is a real thing. An important issue to know about.
ReplyDeleteThis is really interesting since I knew someone 3 dozen years ago that fits this fraud category and I couldn't believe she did it.
ReplyDeleteI think a lot of people forget that when they commit fraud, they aren't hurting the insurance company, they are hurting everyone else. It's so disappointing that people try to rig the system, which makes it hard for insurance companies and even harder for everyone else.
ReplyDeleteThis is really a helpful information. Glad you share this
ReplyDeleteThis is very interesting. My ex partner works t an Insurance company but I never heard that they are fraud or something like that.
ReplyDeleteOh, this is sad. Thanks for the information, I am not aware of this and I do believe that this must be resolve asap.
ReplyDeleteMy dad used to work for Insurance before. I never heard of Insurance fraud from his work but heard some horror stories about some companies.
ReplyDeleteAnything that makes your payments skyrocket needs to be checked. I'm sure its not humorous to have spend a good part of your work time trying to decipher truth from fiction.
ReplyDeleteSuch a great information as I am not much aware about the facts behind such insurance frauds. I hope that Insurance companies have a counter plan to reduce the number of fraudulent claims gradually!
ReplyDeleteInteresting post! I find this info helpful. Thanks for sharing
ReplyDeleteThis is so scary! What an important topic. Thanks for shedding light on this, I really need to share this around! Great post!
ReplyDeleteI've heard a lot about insurance fraud and it's really scary if it happens to you.
ReplyDelete