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Three Reasons You Should Think Twice about Committing Insurance Fraud

Elephant insurance claims

What is insurance fraud, exactly? Generally, it is a willful effort to obtain benefits that people are not actually entitled to. There are multiple types of insurance, and many ways to produce fraudulent records. Here are three things you should consider if you have been thinking about submitting false insurance claims, or know someone who has.

1. Everyone Pays

Do you think that insurance fraud is a victimless crime? Many people who commit fraud say that it is not a big deal because insurance companies charge high prices anyway. The problem here is that insurance companies need to make money. Fraud is not paid for by insurance companies. Rather, it is an expense passed on to other hardworking families who might already be struggling. The average American family, in fact, pays an estimated $400 to $700 in increased premiums every year owing to fraud.

2. There are Many Safeguards in Place

What prevents most people from committing fraud? As some people filing funny insurance claims have learned the hard way, there are many agencies and people who work to prevent fraud from happening. There are bureaus and state agencies set up to handle these cases, and for example, about 45,000 cases were opened for investigation in 2010. Are you out of the woods if no one catches the discrepancies in your paperwork? Not quite. About 50% of private investigators are actually employed by private industries such as insurance companies. These investigators will follow up on you, and report back if you are lifting heavy objects, for example, after claiming extensive back injuries in Elephant insurance claims.

3. Investigators Know What to Look For

A lot of people have tried to file fraudulent insurance claims, and this means there is a lot of data about what people will do or how they will act when they are trying to commit fraud. Insurance companies can analyze and cross check data to see how you measure up against thousands of submitters, and the National Insurance Crime Bureau has developed a 23 point list of indicators of suspicious loss.

What do you know about funny insurance claims? Let us know in the comments

Comments

Allison Larson 14-10-2013, 08:35

in my business law class that was the example we heard about. a fireman claimed to have injured himself yet a private investigator found him lifting things in preparation for a vacation. sorry, no insurance claim for u!

Laura Hill 14-03-2014, 14:18

people who do things like that annoy me. Work for your money like everyone else, and only submit claims when there is actually something wrong.

Maurice Brooks 13-04-2014, 18:04

people who do things like that annoy me. Work for your money like everyone else, and only submit claims when there is actually something wrong.

Norman Blair 17-05-2014, 20:48

people who do things like that annoy me. Work for your money like everyone else, and only submit claims when there is actually something wrong.

Isabella Banks 16-06-2014, 20:50

people who do things like that annoy me. Work for your money like everyone else, and only submit claims when there is actually something wrong.

Albert Ellis 16-07-2014, 20:53

people who do things like that annoy me. Work for your money like everyone else, and only submit claims when there is actually something wrong.

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