March 28, 2020

Insurance Fraud – How Insurance Fraud Works | Types of Insurance Fraud

Insurance fraud is not a victimless crime. When people cheat insurance companies out of money, the honest people that pay premium pays through increased insurance costs. With this article, you will find out more about insurance fraud.

Insurance Fraud

You Should See >>> Insurance in USA – Insurance in the United States of America

What is Insurance Fraud?

Insurance Fraud is an illegal act on the part of either the purchaser or the seller of an insurance contract. It’s from the issuer that includes selling policies from the non-existent companies, falling to submit premiums and that of the churning policies to create more commissions. The buyer fraud is consisting of exaggerated claims, falsified medical history, post-dated policies, vertical fraud, faked death nor that of kidnapping and murder.

How Insurance Fraud Works

Insurance fraud is a trier to exploit an insurance contract. Insurance is meant to be for protection against risks, damage, etc. not to serve as a vehicle to enrich the insured. Though by its policy issuer does occur, the majority of the cases have to do with the policyholder attempting to receive more money by exaggerating a claim. The sensational for instance is faking a death or committing murder for the insurance money is very rare.

Also, Read >>> Insurance Agent – Skills, Benefits, and What an Insurance Agent Does

Types of Insurance Fraud

There are various types or kinds of insurance fraud. We mention the most common ones below.

  • Stolen Car.
  • Car accident.
  • Medical procedures
  • Storm fraud
  • Faked death
  • Staged home Fires.
  • Abandoned house fire.
  • Renter’s Insurance.
  • Car damage
  • Health insurance billing fraud

The above listed are the kinds of insurance fraud an individual can commit.

Who Commits Insurance Fraud?

Insurance fraud is committed at many levels within an environment; from the professional criminals to otherwise honest law-abiding policyholders who are inflating the one-off insurance claims. An insurer can decide to reject a claim or part of the claims that are made fraudulently. However, an I insurer cannot reject the entire claims.

Want to Know About Insurance Fraud? >>> Insurance Claim – What is Insurance Claim | Types of Insurance Claim

How to Report Insurance Fraud?

For one to identify an insurance fraud activity is generally simple and easy. Your instinct or the gut of feeling can be very correct or right to indicate and the frequently people witness activity that they feel is unusual or not quite right but may feel that is just strange behavior.

The following below are details or information on the suspect of insurance fraud contact.

  • Email: report.fraud@ifba.online

NOTE: That if you make a report concerning a suspected fraud. Your information shouldn’t be recorded and you can as well report at your territory or state police.

Leave a Reply

Your email address will not be published. Required fields are marked *