We often talk about how much insurance fraud costs the
country every year and different fraudsters can get away with their scams and
make millions off insurance companies. Today, we are going to take a little
break from talking about insurance scams and insurance
investigations and discuss what needs to be done to minimize the damage.
Insurance investigators, companies and policy holders can
only influence the process to a certain extent, the real change in the
situation will happen when the government decides to make changes like the ones
mentioned below:
Weak Laws
Many states in the U.S. have weak laws against fraud, and
insurance fraud in particular. For example, New Jersey’s immunity law, which
prevents anti-fraud agencies from sharing information related to cases of fraud.
So the first thing that needs to change is these laws. In addition, harsher
punishments for people who commit these frauds should also be considered.
News Coverage
More often than not, insurance scam cases escape being
noticed be the media. Local newspapers or electronic media may mention the
story once or twice but an insurance scam story rarely makes it to the national
television. This needs to change, if we are to minimize insurance fraud in the
country. The magnitude of awareness that the media is able to create can help
people learn about scams and protect themselves.
“No-fault” Change
The no-fault insurance system, like the one in New York,
needs to change. This system is prone to scams, hence the rise in no-fault
insurance fraud cases in the state. Doctors, lawyers and policy holders are
involved in such scams and because of that, honest policy holders have to pay
premiums that are 5 times higher than in other states.
State Level Anti-fraud Authority
This change may take some time and effort to enact, but it
would very beneficial to formulate state governed anti-fraud authority. An
office, whose sole purpose would be to investigate and catch fraudsters, would
really deter scammers.
Congress Funding
The Congress should provide funding to agencies that
investigate insurance fraud, so they can function at full capacity and are able
to uncover schemes that target policy holders and insurance companies.
These are some of the major changes that should significantly
help the government reduce the number of insurance scams happening in the
country. But until these changes come into effect, if they do at all, insurance
scam investigation units, like ours, have to do their part to help clients uncover the truth
through insurance fraud investigations.
No comments:
Post a Comment