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 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
As 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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