At times, people may engage in activities that are intended to deceive insurance company with intention of acquiring money wrongly. Such deeds are called Insurance Frauds. They are common incidences within this sector. To counter such incidences different states are coming up with fraud bureaus that have mandate to do thorough investigations to such cases. Application of appropriate techniques will reduce Insurance fraud Orange County CA drastically and improve the insurance sector.
This is not only committed by policy holders alone, but also insurers tend to commit the claims. However, those committed by insurers are less compared to those done by insured. The impact of such fraudulent deeds is not only felt within the industry, but also by the entire society. It is therefore, very important to punish culprits severely for the betterment of society.
Some of ill-intentioned employees of insurers have experience in such engagement with intention of stealing the company. The other groups who engage in such acts are claimants who most to time issue irrelevant information, which has been changed, so that they can acquire what they should not acquire.
The highest percentage of bad incidences dealt with by insurance companies is composed fraudulent claims. This indicates that appropriate precautionary measures ought to be put in place to ensure that the industry does not collapse. This is owing to the fact, that millions of money is lost through this evil undertaking. Criminals normally take advantages of loopholes present in laws that enhance protection of insurers.
Perpetrators use techniques that are very complex to the extent that it is almost impossible to detect and differentiate between fair claims from the dubious ones. Indeed, some claims that are compensated by insures are not supposed to be compensated. This means a loss to the insurer. In fact, some of statistics that show losses incurred by companies are just rough estimates due to the fact that it is very hard to detect exact amount that is lost.
Frauds in this industry are normally classified into two. Hard frauds occur when a parson whose property has been insured either against fire, burns the property deliberately so as to acquire benefits of compensation. This is a common act through which huge sums of dollars are stolen from insurers. The other one is soft type. This is very common than the hard type. Here policy holders exaggerate losses incurred to acquire more compensation.
Some individuals tend to give wrong information in life insurance so that compensation can be done to the beneficiaries. For example, a family member may state that a person who had been inured against death is dead while this is not the case. This is a common phenomenon and should not be tolerated.
It is true that there are penalties that those caught perpetrating the act ought to face. Indeed, there is no exact set magnitude of a penalty since it varies depending on the degree and amount of money acquired through the act, and also the history of concerned defendant.
This is not only committed by policy holders alone, but also insurers tend to commit the claims. However, those committed by insurers are less compared to those done by insured. The impact of such fraudulent deeds is not only felt within the industry, but also by the entire society. It is therefore, very important to punish culprits severely for the betterment of society.
Some of ill-intentioned employees of insurers have experience in such engagement with intention of stealing the company. The other groups who engage in such acts are claimants who most to time issue irrelevant information, which has been changed, so that they can acquire what they should not acquire.
The highest percentage of bad incidences dealt with by insurance companies is composed fraudulent claims. This indicates that appropriate precautionary measures ought to be put in place to ensure that the industry does not collapse. This is owing to the fact, that millions of money is lost through this evil undertaking. Criminals normally take advantages of loopholes present in laws that enhance protection of insurers.
Perpetrators use techniques that are very complex to the extent that it is almost impossible to detect and differentiate between fair claims from the dubious ones. Indeed, some claims that are compensated by insures are not supposed to be compensated. This means a loss to the insurer. In fact, some of statistics that show losses incurred by companies are just rough estimates due to the fact that it is very hard to detect exact amount that is lost.
Frauds in this industry are normally classified into two. Hard frauds occur when a parson whose property has been insured either against fire, burns the property deliberately so as to acquire benefits of compensation. This is a common act through which huge sums of dollars are stolen from insurers. The other one is soft type. This is very common than the hard type. Here policy holders exaggerate losses incurred to acquire more compensation.
Some individuals tend to give wrong information in life insurance so that compensation can be done to the beneficiaries. For example, a family member may state that a person who had been inured against death is dead while this is not the case. This is a common phenomenon and should not be tolerated.
It is true that there are penalties that those caught perpetrating the act ought to face. Indeed, there is no exact set magnitude of a penalty since it varies depending on the degree and amount of money acquired through the act, and also the history of concerned defendant.
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