Insurance fraud is the act of obtaining fraudulent outcome from an insurance policy. Insurance is used as a form of risk management for protection against uncertain losses. But when large sums of money become involved, people might try to deceive the system for personal gain.
One of the most common insurance frauds is the exaggeration of a claim in an attempt to receive more compensation. Policyholders try to show more damage than was actually caused and get extra money as well. The chances of fraud increase when large sums of money are involved. Insurance fraud may be committed by any person in a position to make a claim. They could try to make a false or inflated claim for monetary benefits. Insurance policyholders are not the only ones who commit fraud. In some cases, insurance providers are the ones trying to deceive their customers. Selling fake or unlicensed insurance coverage is illegal. Theft of insurance premiums by brokers is also considered to be insurance fraud.
Insurance fraud accounts for millions of dollars in losses for policy providers. This leads to an increase in costs for other customers. Detecting false claims is complicated, and sometimes, insurance companies are unable to properly check the claim.
Being charged with insurance fraud could lead to serious administrative action against you. If large sums of money were involved, you could face criminal charges as well. It is in your best interests to contact an experienced defense attorney. The attorney will oversee your case and try to prove that your claim was legitimate.
Subscribe To This Blog's Feed