Insurance Fraud - Insurance Tips Today
Tips on how you can protect yourself
Insurance Fraud - How to ensure your loss claims are paid
Insurance fraud is usually said to occur when someone knowingly lies to obtain some benefit or advantage to which they are not otherwise entitled.
Insurance
companies pay out large amounts of money to people who knowingly commit
fraud by filling false claims. People sometimes will commit insurance
fraud feeling that they are only going after the multinational insurance
companies. Nothing could be further than the truth.
Insurance fraud hits ordinary consumers like you and me right where it hurts. Our insurance premiums go up because the insurance companies are not in the business of loosing money. They pass the losses on to their policy holders.
Insurance fraud is a crime for which, one way or another honest consumers and businesses pay the price. Insurance fraud increases insurance rates for all of us.
Insurance fraud examples:
√ When people
intentionally misrepresent material facts and circumstances to an
insurance
company to benefit and receive compensation for a claim they
would not be entitles to if the
truth was known.
√ There have been cases
where people deliberately fake accidents, injury, theft, arson to
collect money from the insurance company.
√ There are times when fires are set to collect insurance money.
√ Damage or destruction of
property is willfully caused to collect insurance money from
insurance companies.
√ Faking bodily injury to
collect insurance money for loss of wages is another form of insurance
fraud.
√ Homeowners make claims
for items such as stereos, televisions or other expensive
equipment that they never purchased and cases where
homeowners inflate claims for items.
What is being done about insurance fraud
√ Insurance companies are investigating suspicious insurance activity.
√ Those caught committing
insurance fraud are not dealt with leniently. Insurance companies
are seeking prosecution to let the public be aware that
insurance fraud cannot be condoned.
√ Ensuring that they
obtain restitution of all insurance money that has been paid out
fraudulent insurance claims.
Tips for consumers
√ Create
an inventory of your home's contents. This inventory should be
periodically updated.
Do this at least once a year.
√ Photograph and video tape your possessions and home.
√ Save
receipts of large purchases. In case of fire or theft, insurance
companies may want a
sales receipt to confirm you actually owned that expensive
laptop or television that you claim
was stolen. It is always a good idea to have receipts.
√ If you have expensive jewellery items, get them appraised for insurance purposes.
√ Keep
your photographs for insurance purposes, copies of receipts etc in a
secondary
location so that in case of a fire they will be
protected. If you have a safe deposit box in
your bank then that is the best place to keep such documents.
Most insurance policy require you to prove your loss. Having an inventory of your household goods with receipts and photographs is the best way of providing such proof. In case you do not have receipts and your home has been damaged. Photographs of the damaged items should also help in settling your claim.