Insurance frauds are increasing day-by-day since there are no proper insurance laws and secondly even after all the investigation people find ways to con the insurance company and claim the amount. Because of that so many companies who have a low capital investment are going through losses and shutting down. Let’s see a few extreme cases of insurance fraud happening around:
Identity theft: This is the most common insurance fraud happening lately. And also because of no legal laws about identification process in insurance people easily make fake identifications and then buy the policies and claim the amount at the time of maturity by false claims.
Employee fraud: Insurance sector is very mainstream and when the employees who are workings knows all the tactics and tricks of how it works, few of them cheat the customers and the company to get the money by doing fraudulent activities. And also there are fake agents following you and giving you the greed to get that policy at a low premium amount. Don’t fall for it!
Medical theft: Some people falsify by showing fake medical bills in order to claim the health insurance policy. This is considered under medical theft. So make sure you see the billing process properly and that no duplicate bills are issued apart from yours.
Car insurance fraud: The maintenance cost is very much higher if you buy a car and the fraud is conducted by unnecessary claiming for the maintenance or false accident by the insurer also sometimes they are frauds which claims that their car is stolen and once the insurance company is done with investigation and everything they get the car back.
Life insurance fraud: In rural areas people do not really have the knowledge about how things work and they try to fool around the companies. This is done to get the settlement amount by claiming false death of a family member and then shifting to some other city or state so that no one knows. Also happens in the metro cities but at a lesser percentage because no one could really migrate so soon after and there are a lot of people and facilities which they have to leave behind here.
Henceforth, be cautious wherever you show your identity card. It may lead to some problems anytime and be self-aware about the frauds happening around you.
Health Insurance Frauds in India - Health Insurance Scams are increasing in India and can be of many types including claim, application fraud, eligibility fraud, etc. Read more!
Insurance frauds might not be a term we often hear in news or otherwise. Know the Tips and Types of Insurance Frauds and how you can avoid them.
Insurance fraud is a major concern for Insurers which continues to increase year by year. Know more about the insurance claims frauds and how insurance fruad can be prevented.