1. What the heck is an insurance policy con anyhow?

An insurance con is produced when benefits are acquired from an insurance company after laying out dishonest information. When a person lies about loss of some property or misrepresents an accident it is a very good example of a scam. To better the chances of gaining from an insurance claim, an individual could decide not tell the truth on some of the facts presented.

2. Is it really essential to be troubled by scams in insurance?

Of course we should be concerned.We will all pay expensive premiums if insurance business enterprises lose cash to misleading activities.This hence implies that when the chance of fraud is high we will end up paying expensive insurance premiums.

When premiums are pricey, businesses end up paying high commercial and health insurance costs.Consumers are faced with price increments on services and consumer commodities because business enterprises pass on the higher insurance costs. What this means is that business enterprises are directly losing tens of millions of dollars annually to fraud and we are all in some manner diffusely losing funds too.

We acknowledge that some of the investments in financial business enterprises like banks comes from insurance companies.Less funds will be available for investment, resulting in decreased economic activity to a some degree, if insurance establishments lose cash.

Selling health insurances and faking accidents by dishonest individuals is one of the examples which can make dangerous states of affairs. Innocent people could be injured or sometimes killed when individuals try to arrange a deceitful accident. Similarly,an arson attack can result in the death of a somebody or pets.Killing people or killing pets for life insurance money is another way fraudulent activities could happen.

3. Since we acknowledge that insurance fraudulent activities are real why are we not eliminating it?

There also various causes for this. It is problematic to discover fraudulent activities in insurance because it sometimes happen only once or a few times and is therefore considered small risk criminal activity. Usually the only way fraudulent actions can be detected is when the fraud is repeated or there is a pattern in the criminal behaviour.

Law enforcement agents give low priority to fraudulent activities when compared to other crimes linked to drug-related substances and alcoholic drink. The complexity of insurance fraud crimes means that they are difficult to prosecute and therefore are given a reduced precedence.When a system has certain deficiencies, it is prone to exploitation through fraudulent actions.

Rather than fighting small deceptive claims in courts, insurance firms at times prefer to pay off the fraudsters. When large amounts are implied they tend to get serious and stand tough.

Making every person aware of fraud is the first essential step. The capability to discover activities of fraudulent activities is another important point. Lastly, people could be persuaded to report fraud to the appropriate government agencies.