Insurance frauds are the act of deceiving an insurance company in order to receive money or benefits that are not rightfully owed. This can include making false claims about damages or injuries, exaggerating the amount of a loss, or even staging an accident. If you suspect someone of committing insurance fraud, there are multiple ways to report it.
Insurance fraud is a crime, and it costs honest policyholders billions of dollars every year. Some people commit insurance fraud on their own, while others may be involved in larger schemes. No matter how it’s done, insurance fraud is a serious crime that can have serious consequences.
Types Of Insurance Frauds
Insurance fraud comes in many forms. Some major types of Insurance fraud including homeowner insurance and other scams can be well explained by the following examples
- A body shop worker and the driver agree to inflate the claim of auto damage and share the profit
- A doctor charges an insurer for the services which are not actually provided to him.
- A worker gets worker’s compensation benefits while he is employed
- Staging a fake accident in which driver, lawyers, and doctors are involved to handle it with associated medical claims and lawsuits
- Homeowner insurance fraud in which a false claim is represented on renters’ policy or house owners for illegal financial gain.
How You Can Avoid to Be Victim Of Insurance Fraud?
As a consumer, you can be a victim of insurance fraud if you did not perform the verification of your insurers or did not double-check the validation of your policy. Here are some steps that you must take before and after becoming a policyholder for any insurance plan.
1. Be An Acknowledge Consumer
Insurance premiums contribute to s major expenses for most consumers. The premiums to be paid depend on the degree of risk involved, history, and individual claims. So premiums will be higher if the risk is higher. So you have to choose wisely and consider all these factors before making an agreement for any insurance plan.
2. Be aware of Your broker or Agent
Your insurance agent or broker is the key person who guides you through the entire process. He must be trustworthy and honest with his clients. You have to do a lite research and interrogation about your agent. You can also ask about his license and confirm his provided information directly with the insurance company to build trust.
3. Make A Duplicate Copy Of Your Policy
Whenever you make an agreement with the insurer, you should receive a duplicate copy of your policy with complete declarations and endorsement. This duplicate copy clearly mentions the following descriptions of your insurance plan
- Coverage of insurance
- Services included in the plan
- Limitations within a reasonable period after your purchase.
If you do not receive the services mentioned in your policy then question your broker or agent.
If he fails to give a satisfactory explanation for the delay, then immediately contact the department of financial service at (800) 342-3736.
4. Do not pay for un-attended services
If you get any medical treatment or dental treatment that is covered by your healthcare provider then you will receive a statement of “explanation of benefits”. This statement outlines the list of services for which benefits have been paid. You have to review it through and check whether you are billed for unattended services or not. Also, confirm that you are not biller for more expensive procedures than were actually provided. If you found anything fishy then immediately contact your insurer clear your doubts.
How To Report Insurance Fraud
Insurance fraud is a serious issue that costs Americans millions of dollars every year. It can take many different forms, such as filing false claims, exaggerating injuries, or staging car accidents.
If you think you’ve been the victim of insurance fraud, or if you know someone who has, it’s important to report it. You can report insurance fraud in several ways. There are a few ways to report insurance fraud.
- The first way is to call the insurance company and report the fraud.
- The second way is to go to the police and report the fraud.
- The third way is to go to the state insurance department and report the fraud.
- The fourth way is to file a complaint with the National Insurance Crime Bureau.
What Should be My First Step For Reporting Insurance Fraud?
If you suspect someone of committing insurance fraud, there are several things you can do to report it. First, gather as much evidence as you can. This might include witness statements, photographs, or video footage. You can then contact the insurance company or law enforcement agency responsible for investigating insurance fraud in your area. You can also contact the National Insurance Crime Bureau (NICB) to report suspected fraud.
Consumer Complaints Vs Insurance Fraud
It is a common observation that different types of conflicts are developed between insurer and policyholder . . Disputes between an insurance company and policyholder are often confused with the criminal act of insurance fraud. Such types of disputes include monetary disputes, policy cancellations, nonrenewals, and delays in customer payments. Reporting such conflicts as insurance fraud is not an act of justice.
The correct way of addressing any conflict or inconvenience is to “file a complaint” against that issue. That filed complaint will be taken into consideration by higher authorities and the insurance company will definitely help you to go towards a solution or compensation.
Final Word
Billion cases of insurance fraud have been reported each year. The high ratio of occurrence of such scams is due to a lack of basic knowledge among the general public and the selfish motives of the people who are involved in such criminal acts. The purpose of an insurance plan is to ensure the security of your health, wealth, and property therefore it is important to double-check your policy statement and cross-check every step for validation. Even after having all green flags, you cannot trust blindly the insurer for the rest of your life.
Reporting insurance fraud is an important step in protecting yourself and your community. By knowing what to look for and how to report suspected insurance fraud, you can help to keep premiums low and protect yourself and your loved ones.
