US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

Read More

Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

Read More

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

Read More

E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

Read More

US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

Read More

Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

Read More

Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

Read More

Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

Read More

Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

Read More

World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

Read More

Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

Read More

US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

Read More

Content By: The Coming Depression Editorial Staff (dates cited below)
Copyright: include link to this article on top of reproduction if you use it.
Bookmark and Share
(No Ratings Yet)
Loading ... Loading ...

real estate insurance fraud

“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.

Are you a mortgage fraud victim?

View Results

Loading ... Loading ...

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.

Coalition Against Insurance Fraud Stats Graph 3-22-2010

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?

References:

(1) BBC News

Prague Daily monitor

(3) The Star Malaysia

Related posts:

  1. Insurance fraud increases as false recovery crumbles“People are anxious, their finances are in trouble and regrettably they are turning to insurance fraud as a way to shore up their financial difficulties,” said Jim Quiggle, communications director...
  2. US real estate market breaches depression territory“Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported.” The whole...
  3. Academic says underwater homeowners should throw keys at bank; arson, insurance fraud on rise as defaults increase” Go ahead. Break the chains. Stop paying on your mortgage if you owe more than the house is worth. And most important: Don’t feel guilty about it. Don’t think...
  4. OR Real estate in trouble: Medical Dental Industry CollapseNews from the frontline: Aaron gets a RMLS Market Action print out for Lane County Oregon. It shows new listings are up 45 percent for February 2010 compared to February...
  5. Car insurance hike 19%; HST adds to consumer woes“Middle class families are forced to work longer and harder than ever, just to keep their heads above water.” — PC Leader Hudak Canada’s province of Ontario and British Columbia...
  6. Millions Face Insurance Crisis As COBRA Ends“As part of the federal stimulus package, the nine-month subsidies made available to the unemployed starting in March have run out for those who collected them from the get-go.” While...

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.

Leave a Comment

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.


Under the 'fair use' rule of copyright law, an author may make limited use of another author's work without asking permission. Fair use is based on the belief that the public is entitled to freely use portions of copyrighted materials for purposes of commentary and criticism. The fair use privilege is perhaps the most significant limitation on a copyright owner's exclusive rights. "