Insurance Frauds: An Illegal Way To Obtain Money

An act of obtaining payment deceitfully from an insurer is called insurance fraud. Insurance frauds can be as various as are different insurance schemes. In this kind of fraudulent the insured gets money by illegally exploiting his/her insurance.

An insurance fraud can be done in any kind of insurance. There are different kinds of insurances, like medical insurance, health insurance, life insurance, home/property insurance, automobile insurance. A person makes insurance of her/his property or health etc. in order to get compensation, in case if any kind of accident occurs.

By making a health insurance and life insurance, a man gets insured about his life or health, and if he gets any kind of physical harm and injury, the insurance company will pay for that. Likewise happens in the other insurances, like in automobile insurance a man makes insurance of his vehicle and, when any kind of accident happens and the vehicle is damaged, then the man gets money to repair it.

All these kinds of insurances are made to secure man and his property, but people take advantage of these insurances in abominable ways. Insurance frauds started with the different insurance schemes. Unlike other illegally ways to obtain money, insurance fraud is an invisible one. Robbery, theft and other kinds of frauds can be detected easily, but insurance fraud can not.

This fraud can be very small one and very severe too. Generally people destroy their property in order to get insurance. Some frauds have small property but show big, and then destroy it in order to get a large sum of money. In automobile insurance they do fraudulent by telling more injury to the vehicle then the actual.

All these frauds harms the insurance companies and the economy of the country.