How Insurance Frauds Are Costing Every Person

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

When somebody gets benefits which they are not qualified for after by design betraying an insurance company then he or she has precisely produced a scam. When someone lies about loss of some belongings or misrepresents an accident it is a a typical example of a scam. To better the chances of profiting from an insurance claim, a person can decide lie about some of the facts presented.

2. Do we truly need to concerned with fraud?

Yes we must be troubled.We will all pay high premiums if insurance business organisations lose cash to fraudulent actions.This hence implies that when the chance of fraudulent activities is high we will end up paying costly insurance premiums.

Commercial enterprises will pay higher commercial and health insurance costs because premiums are expensive.Consumer commodities and services are traded at increased costs because the high insurance premiums are handed on to the customer. By losing tens of millions of dollars annually to fraudsters in an oblique manor, every buyer is also losing funds indirectly.

Now, another issue is that insurance businesses invest their cash in financial establishments such as the banks.So when the insurance organisations lose cash there will be less funds for investments, and this then leads to a general decay of economic activity to some extend.

The life and health of individuals will be in peril when insurance fraudsters sell fake insurance policies or arrange unreal accidents.. Innocent individuals can be injured or sometimes killed when people try to stage a misleading accident. Similarly,intentional burning could end up in the death of a somebody or animals.Murdering people or killing animals for life insurance funds is another way fraud may take place.

3. Why are we failing to stop these activities of fraud?

We can take several reasons. Insurance fraud activities are interpreted as small risk criminal acts because in some instances it is very difficult to determine if it is done only once by the scammer. Usually the only way deceptive actions could be discovered is when the fraudulent activities is repeated or there is a pattern in the criminal behaviour.

Law enforcement agents give low importance to fraudulent activities when compared to other crimes linked to drug-related substances and alcoholic drink. Insurance crimes are considered to be too intricate to be successfully prosecuted, and this has resulted in them being given a low legal importance by prosecuting officers.When a system has certain deficiencies, it is prone to abuse through deceitful activities.

Rather than challenging small dishonest claims in courts, insurance firms in some instances prefer to pay off the fraudsters. Insurance business enterprises tend to get tough when large sums are implied.

Making everyone aware of fraud is the first vital step. The second point is the capacity to discover deceitful activity. Thirdly, notifying fraud to the appropriate law-enforcement agencies must be appalled.

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