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Wednesday, March 12, 2008

Insurance Fraud Implications

Like any other fraudulent actions, insurance fraud is prevalent in our society.

Insurance fraud has long been in existence and has become a common phenomenon in our modern lives. Insurance fraud may be committed by an individual, or by organized syndicated groups.

Insurance fraud occurs when someone knowingly lies to obtain some benefit or advantage to which they are not otherwise entitled or someone knowingly denies some benefit that is due and to which someone is entitled. It may be committed by an individual, or by organized syndicated groups.

In a survey, nearly one of four Americans says it is alright to defraud insurers. Many have said that it is perfectly permissive to exaggerate insurance claims.

The mind set of some Americans have been pestered by bad thoughts as some had claimed that they would commit insurance fraud if they knew they can get away with it.

Some have said bluntly, that they would not report any insurance scams that may come to their knowledge. They keep the same with themselves and let the authorities pursue the culprit.

Some have claimed, by means of fraudulent means, worker’s compensation insurance.

In car accidents, scrupulous people build up a claim of bodily injuries fraudulently in order to obtain compensation from the insurance company.

By these facts, it can be gleaned that insurance fraud poses a huge problem in our society. Finding ways to deter such activities seem so hard to do, despite massive government campaigns and measures.

Insurance fraud has been infiltrating various departments or institutions of our society. Various insurance institutions, (government or private insurance companies) have been a victim of these scams.

To name a few areas of which insurance fraud rampant is worthwhile, they are the following:
  • Medical Insurance
  • Worker’s Compensation
  • Property or casualty insurance
  • Car insurance coverage
  • Health care and life insurance
The mechanics and ways of committing insurance fraud from any of the aforementioned areas are diverse and varied. However, one common element exists from all insurance fraud violations, and that is, the damage that it brings to the insurer, the true claimants and to society as a whole.

These were the implications that insurance fraud had brought into our lives.