Did you know that each year, funny insurance claims add up to an estimated $40 billion dollars? This money does not come out of the pockets of insurance company employees. Instead, it costs the average American family somewhere from $400 to $700 every year in increased premiums. There are many types of insurance fraud, and if you have been thinking about trying to pull it off, beware. We cannot stop you from trying, but we can give you a four point list of what will likely happen.
1. Extensive Fraud Bureaus
Fraud bureaus are state agencies that investigate potentially false insurance claims. In 2010, for example, more than 45,000 cases were open for investigation, and almost 5,000 arrests occurred. There are about 1,400 people who are employed to investigate and handle potential cases of fraud.
2. The Secret List
You might think that you have everything figured out when it comes time to submit. However, there is actually a list, developed by the National Insurance Crime Bureau, that indicates 23 indicators of suspicious loss. This includes handwritten receipts for repairs, seasonal employees who submit medical claims as their job is ending, and claimants who are completely calm even when submitting fairly large claims.
3. Private Investigators
One reason people have trouble getting away with fraudulent insurance claims is the private investigators that insurance companies hire to check in on them. This is not just something out of a movie, but a reality of the industry. About 50% of insurance agents, in fact, are employed by private corporations such as banks and insurance companies. They will check on you via social media, in person, and more.
4. Hard to Do More Than Once
Your cousin might think that his plan to submit multiple false Elephant insurance claims is foolproof, but advise him otherwise. Even if you get away with a scam once, insurers are highly tuned to patterns of fraud, based on data from thousands and thousands of submitters. They will analyze and cross check, and their cross checking is not limited to their own system.
There are a lot of ways you can make money, so stay away from fraudulent insurance claims, and be honest so that other families do not have to bear the brunt of your imagined injuries or issues. Have anything to add? Let us know in the comments!
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