Why Insurance Fraudulent Activities Are Bad For You

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

Well, an insurance scam broadly speaking happens when a person deliberately leads astray an insurance company about an insurance matter in order to receive benefits which are not justly his or hers. A good example of a scam is when a factitious accident is reported or a person pretends to have lost an item. To increase the opportunities of benefiting from an insurance claim, an individual could decide not tell the truth on some of the facts presented.

2. Can I get interested in insurance fraudulent activities?

Of course we can be troubled.The more money lost to fraudsters by insurance business enterprises the higher the premiums the public will pay.This thus implies that when the risk of fraud is high we will end up paying expensive insurance premiums.

When premiums are high-priced, companies end up paying high commercial and health insurance costs.Consumers are faced with price increments on services and consumer goods because business enterprises pass on the high insurance prices. Now, we are all diffusely losing cash to fraud because companies are primarily losing thousands of dollars.

Now, another issue is that insurance organizations invest their cash in financial establishments such as the banks.To certain extend, there is a general decrease in economic activity when essential institutions such as insurance institutions lose cash, because less money will be forthcoming for investment.

The life and health of people will be in peril when insurance fraudsters sell fake insurances or stage factitious accidents.. Arranging a unreal accident could result in people getting injuries or worse being killed. Similarly,setting fire intentionally can result in the death of a somebody or animals.A defrauder can seek to gain from life insurance cash by murdering people or killing animals.

3. Since we recognize that insurance fraudulent activities are real why are we not eradicating it?

Different reasons can be established. Insurance fraudulent activities are considered as low risk criminal acts because at times it is very challenging to detect if it is done only once by the fraudster. Some examples of fraudulent activities are discovered if the perpetrator repeats the same crime or if the deceptive activity is similar to other recorded insurance fraud crimes.

Law enforcement agents give low priority to fraudulent activities when compared to other crimes linked to drugs and alcoholic drink. Prosecuting Attorneys give small legal precedence to insurance crimes since they take them to be complex for successful prosecution.It is a known fact that fraudsters can gain from perplexing circumstances since they can exploit deficiencies within the systems.

At times it is interpreted to be a waste of time to fight small deceptive claims by the insurance organizations. If the amounts of funds involved are large the insurance business organizations tend to pay attention.

Now, the primary issue to thwart fraud is to make sure that every person is knowledgeable of it. Secondly, being able to discover fraudulent actions is also vital. Lastly, people should be persuaded to report fraud to the appropriate authorities.

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