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Reflecting Over the Basic Types of Insurance Frauds

September 3, 2015 by  
Filed under Blog

After tax evasion, insurance fraud is the second most popular and widespread white-collar crime today. As per a recent study, insurance frauds cost the citizens of United States of America more than $100 billion per annum in the form of premium increases. The surprising element here is that out of all the insurance claims, over 10% of them are fraudulent.

Even though insurance frauds are happening all around the world and in almost all sectors of the economy, some of them witness such frauds in quick succession:

Health Industry

Health IndustryHealth insurance frauds are one of the most common types of frauds around the world. Such frauds cost insurance companies in the US as much as $60 billion each year. Health insurance frauds can be divided into two categories: Member Fraud and Provider Fraud. Member fraud is where the client holds back some information from the insurance policy provider; whereas, Provider fraud is when a healthcare worker or an organization prepares fake bills to an insurance company for assistance that was never provided. Over-billing, gratuitous appointments and needless tests are some of the examples.

Automobile Industry

Staged and orchestrated accidents are a common way of committing automobile insurance frauds. You will not be amazed to find out that this is one of the most thriving types of insurance frauds today. In order to collect unfair claims from its auto-coverage insurance policy, a deceitful person will frame back-end collision and show damages to qualify for claims. In other instances, people try to overstate or exaggerate the claim in order to get hold of more money.

Life Insurance

Life InsuranceAs per the stats revealed by The Coalition against Insurance Fraud, life insurance claims cost every American family approximately $1650 each year and a 25% hike in premiums per annum. Life insurance frauds take place when the recipient tries to obtain the claims of the policy while the policy holder is still alive. However, insurers can also be on the wrong side of the law and commit a fraud. Many times, the agent tries to cancel a current life insurance policy to swap it with a new one for which he will receive cash of the same value as the previous one. This means that agents can earn more commission without getting new customers.

At National SIU, we provide rigorous investigation procedures so that appropriate actions can be taken in order to curtail losses. From insurance fraud investigation services to workers compensation fraud surveillance, we facilitate all your needs. Pick up your phone and give us a call at 800 960 6748 now!

 

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