Insurance Fraud

Insurance fraud occurs when any act is committed with the intent to fraudulently obtain some benefit or advantage to which they are not otherwise entitled or someone knowingly denies some benefit that is due and to which someone is entitled. False insurance claims are insurance claims filed with the intent to defraud an insurance provider.

Insurance fraud has existed ever since the beginning of insurance as a commercial enterprise. Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually. Types of insurance fraud are very diverse, and occur in all areas of insurance. Insurance crimes also range in severity, from slightly exaggerating claims to deliberately causing accidents or damage. Fraudulent activities also affect the lives of innocent people, both directly through accidental or purposeful injury or damage, and indirectly as these crimes cause insurance premiums to be higher. Insurance fraud poses a very significant problem, and governments and other organizations are making efforts to deter such activities.

Read more about Insurance Fraud:  Causes, Losses Due To Insurance Fraud, Hard Vs. Soft Fraud, Detecting Insurance Fraud, Legislation

Famous quotes containing the words insurance and/or fraud:

    The Republican convention, an event with the intellectual content of a Guns’n’Roses lyric attended by every ofay insurance broker in America who owns a pair of white shoes.
    —P.J. (Patrick Jake)

    The disfranchisement of a single legal elector by fraud or intimidation is a crime too grave to be regarded lightly.
    Benjamin Harrison (1833–1901)