The history of fraud and insurance-related offences is as old as insurance itself. Some texts and narrations confirm that the phenomenon of insurance fraud dates back to 300 BC.
At present, insurance companies suffer from this scourge, which forces them to pay false, false and improper claims. In contrast, many people are defrauded and their money seized by insurance company employees and insurance brokers.
The insurance industry, apart from annual losses of approximately $4 billion and more, is concerned that insurance or fraud offences are not always intended for small financial compensation, but are dangerous because it is an organized crime by persons to finance their illegal activities, a means of money laundering or terrorist operations.
Forms of Fraud and Insurance-Related Offences
Amplification and over-assessment of damages
When you have an accident, you inflate the amount of damage to your vehicle, the amount of damage to your home after a fire, or complications after surgery, in order to obtain financial compensation higher than the actual damage.
Give false information when underwriting
This may occur intentionally or unintentionally, as the insured gives incorrect information when purchasing the policy, the status of the car, the market value of the car, home or property, address, and other information that the insurance company wishes to know in order to determine the price of the policy.
Creating car crashes, fire, theft
The most common insurance offence is the creation and destruction of car collisions in order to obtain the amount of insurance, often occurring under the cover of the system in order to avoid witnesses. A house was also set on fire, or an incident of theft of personal property, cash, etc.
False claims made by hospitals and car repair workshops
Some doctors, in agreement with the policyholder, ask the insurance company to dispense medicines and perform false analyses. Repair workshops may also provide receipts for unreal repairs to the insurance company in order to obtain funds.
Lying and hiding facts
In the event of an accident and a claim, the insured will defying and lying in order to benefit and obtain insurance.
Falsifying documents, documents and records
Documents and documents must be submitted to the insurance company to support the claim and obtain compensation, so fraudsters falsify or modify documents to support their insurance claim.
Stealing someone else’s insurance
For example, someone may steal, use and use a medical insurance card belonging to another person without the parties concerned noticing it, until a case or evidence reveals fraud and fraud.
Creating personal injuries
By harming himself and causing injuries in order to obtain medical expenses.
Fraud and Insurance-Related Offences by Companies
Employees of insurance companies or brokers can trick customers for personal gain. A deceptive agent can collect insurance premiums from the customer, without handing over the policy to the company. He claims to have a mandate to carry out insurance procedures and receive premiums from the insured without providing the necessary proofs. This story of fraud is often revealed when the victim is involved in a car accident, and he submits an insurance claim and discovers that his insurance policy is forged.
Customers should pay attention to some signs that may expose company fraud or employee fraud:
- When the employee or broker is aggressive and exerts pressure to sign the policy.
The plaintiff or broker should promote illogical offers and discounts of about 15-20% on discounts from other companies. - When you do not find a company address, or call the company or agent and you cannot access it.
Home Insurance Offences
Here are some fraud forms for home insurance claims:
- People amplify the amount of damage to get more money than the real damage.
- People sell their personal belongings and then claim to have been robbed.
- Some claim to have stolen property or money they never had.
- Some burn their homes when they are in financial distress.
- Lying, fraud and hiding facts.
Fraud and Life Insurance Offences
Life insurance fraud occurs in several ways, such as:
- People who try to get life insurance even though they know their lives are short and don’t advertise the health problems of the insurance company.
- Counterfeiting death is the least common difficulty despite the fact that the subject is circulated in many movies, getting the amount of insurance through an intermediary to escape and live in another country.
- The holder of the policy was killed by a beneficiary or beneficiary to obtain the amount of insurance.
- A fraudster may send notices of the cancellation of the policy until you pay for the new policy, take it and put it in his pocket.
- The agent contacts you and convinces you to get a new document with better features for an additional amount of money, but you get the same document and put the extra amount in its pocket.
- Some unscrupulous individuals claim to be insurance agents and sell false documents. They may claim to work for a national insurance company but want you to pay them in advance. One advice is to work with licensed agents only. You can request and verify the license number on the Insurance Authority website.
