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“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats,” said Nick Starling (1), the ABI’s director of insurance.
Many consider it fraud when an insurance company forces people with legitimate claims to resubmit them again and again, or hire an expert to do it before the claim is paid. We’re sure many people feel that at least some of the foreclosures today, especially those of people without mortgages, to be frauds. How many people in these companies are being accused of fraud, or go to jail?
Arson cases increasing, says Fire Dept by TheStar Malaysia
The Fire and Rescue Department has uncovered an increasing number of arson cases since its investigation division was formed four years ago.
Edwin said arsonists did not always torch a building to reap profits, such as insurance claims.
“Sometimes, it is not just the money. We have had a case involving a jealous boyfriend. “He torched his girlfriend’s house after he saw her with another man,” he said. “There are also cases where cars were torched with people still inside,” he said. “Two arson cases in Perak will be taken to court soon,” he said.
Asked about some businessmen who purportedly set fire to their factories to claim insurance, especially during an economic downturn, Edwin said: “Sometimes, investigations point towards that but it is not easy to prove.”
Referring to insurance claims in arson cases, Edwin said only the property owners were privy to the department’s fire reports.
“If the insurance companies suspect something dubious about a claim, they usually hire private investigators to dig into the case,” he said, adding that there were at least eight firms that offered such services in the country. Source: The Star Malaysia (3)
Staged accident or coincidence?
Staged accidents are the tip of the iceberg. The claimants who cheat on insurance claims involving ‘injury’ are increasing at an exponential rate concurrent with our crappy immigration policy. We could name the worst three ethnic group offenders here, but the ADL would try to shut us down. However, your rates will continue to rise if nobody has the stones to go after the cheaters. In most states, for example, if you are caught taking income replacement benefits while still working, you are arrested for fraud and face imprisonment. In many other States/Provinces? You are simply cut off of benefits and most insurers do not bother to go after the fraudulent payouts. Insurers pay out millions in housekeeping and childcare benefits to ‘injured’ parties wherein the recipient is a friend or relative who splits the money with the insured and never shows at the residence. It’s pretty easy to go after the ‘big-bad insurance industry’, but I know where the fault lies. Go have a beer or two with any insurance adjuster in Southern Michigan and you’ll soon get the skinny on why your rates will continue to go up unless we aggressively go after the cheaters. These folk not only take money from all our pockets, but hurt the honest claimant.
Although the featured article is concerning fraud around the world, you can be sure this kind of illegal activity (both from the insurance companies and their insurees) are becoming commonplace around the your neck of the woods as the so called recession deepens.
Insurance fraud increases by 14% in 2010
Insurers in the Czech Republic investigated 5,142 cases of suspected frauds last year, 14 percent more than in 2009, and the total value of the detected frauds dropped by one percent to Kc625m, the Czech Insurance Association (CAP) told CTK yesterday.
Global statistics show that around one in seven insurance claims reported by clients is a fraud.
The value of the uncovered frauds decreased mainly by motor vehicle insurance where, traditionally, the number of insurance frauds is the highest.
“We registered a 3 percent growth in the number of the investigated cases also in this area last year,” said CAP expert in insurance fraud prevention Ondrej Karel, adding that the value of the uncovered frauds dropped by 16 percent. Source (2)
Where is the real fraud?
Wanna know what real insurance fraud is? You have one accident in 30-years and they won’t renew your policy. So you have to go elsewhere and your insurance premium jumps 400-percent for five years. That’s more than the insurance cartel paid out for the accident! And, they repaired your car with genuine Red Chinese parts that will rust out in a couple of years. Now you’re talking real insurance fraud!
The problem is so-called no-fault insurance. There’s really no such thing. No-fault insurance is a political fiction to boost insurance cartel profits. The way the cartel works it you’re always at fault. The solution is to return to the original system that worked well for 50-years.
The insurance industry is to blame for their own misfortunes. Instead of properly staffing the claims departments, they would rather have the overworked adjuster pay out a fraudulent claim than to fight it all the way in court. Its cheaper in the short term but costs lots more in the long run as they keep coming back for more.
Government is also to blame for not creating laws to stop this nonsense. A lot of the Fraud is done by the white collar criminals including the Lawyers, Doctors, Chiropractors, Physiotherapist, massage therapists and the shrinks. Indeed, why create laws to stop the gravy train when the gravy greases the law maker’s pockets?
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This entry was posted on Tuesday, February 8th, 2011 at 5:41 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.