| Insurance fraud is widespread in most countries, | | | | insurance companies more than $12.3 billion each |
| and the United States is no different. You can find | | | | year. New ways are being developed by |
| insurance fraud in many areas like healthcare, | | | | fraudsters to deceive insurance companies. The |
| automobile industry, life insurance, travel industry | | | | most popular type of car insurance fraud is |
| etc. Insurance fraud has become a lucrative | | | | planned collisions or accidents, where the person |
| business for criminals who find it very easy to | | | | intentionally collides with an innocent driver, making |
| "plant" evidence and demand insurance cover for | | | | it look like a genuine accident. In this way the |
| any damage or loss that is intentionally carried out. | | | | insurance is claimed as the insurance companies |
| Some of the different types of insurance fraud | | | | cannot detect the fraud as the accident appears |
| are as follows: | | | | genuine. |
| Life Insurance Fraud: | | | | Travel Insurance Fraud: |
| Life insurance fraud costs insurance companies | | | | Travel insurance can protect you if you have lost |
| billions of dollars every year. Majority of individuals | | | | your luggage, or if you are sick while on a holiday, |
| take up a life insurance policy so that their families | | | | or if your flight is delayed. These reasons are |
| will be provided for financial should anything | | | | enough for fraudsters to claim insurance. With the |
| happen to them. However, there are some people | | | | help of a dishonest physician a person feigns an |
| whose intention is to defraud the life insurance | | | | illness and shows the evidence of his illness and |
| company. A person who is suffering from a life | | | | subsequent treatment to the travel insurance |
| threatening disease or illness secures insurance | | | | companies. Frauds related to losing baggage are |
| and then dies before the waiting period. | | | | also conducted on a regular basis. Here people |
| In other cases, the person, securing a high paying | | | | tend to over-value their baggage when filing for |
| policy, may go missing after the waiting period. A | | | | the insurance claim. |
| missing person's report is filed with the police and | | | | Health Insurance Fraud: |
| if the person is not found after 7 years, he or | | | | Health insurance plans like Workers Compensation |
| she is legally declared as dead. To obtain the | | | | Plans, Medicare or Medicaid insures a person so |
| proceeds of the policy, the beneficiary has to wait | | | | that they have access to healthcare if anything |
| seven years. If a death occurs in a car accident, | | | | untoward happens. These plans also contain |
| and the person goes missing after that, he may | | | | disability coverage. Many individuals take |
| be declared dead sooner. But in all these cases, | | | | advantage of this coverage by complaining about |
| the person does not die in reality. It is all a scam | | | | aches and pains that are difficult to diagnose. The |
| to defraud the insurance company. | | | | reason for doing this is to remain in a disability |
| Automobile Insurance Fraud: | | | | insurance plan so they do not have to return to |
| According to reports, auto insurance fraud costs | | | | work. |