6 examples of insurance fraud

Countless examples of insurance fraud can be cited. However, some fraudsters do not see what they do as insurance fraud. It sometimes seems like just something small and harmless. Yet you had better be careful, because there are major consequences to committing fraud. There are different types of insurance fraud, for example:

• Lying or concealing when applying for insurance
• Intentionally causing damage
• Claiming more damages than actually suffered
• Pretending harm or distorting the facts

To clarify exactly what insurance fraud is, we give you 6 examples of insurance fraud below.

#1 Adjust your insurance coverage, vbefore you claim

A clear example of insurance fraud is adjusting your insurance coverage before you claim. Suppose you drive into a pole and have a big dent in your car. With your WA + limited casco car insurance, damage to your own car is not covered. Therefore you quickly increase the coverage to WA + full body, before you claim the damage. Then damage to your own car by your own fault will be compensated and you will receive a damage payment from your insurer. So you claim an old damage on the new coverage.

#2 Lying or withholding information on an insurance application

It seems like such a small thing, answering a question with "No" that you should actually answer with "Yes. However, the insurer asks these questions for a reason. An insurer wants to get a clear and complete picture of exactly who and what they are insuring. That is why they always ask a number of underwriting questions of a policyholder before deciding whether or not to accept the application. An insurance contract is based on trust. If you withhold information or lie on your insurance application, the insurer cannot trust you to follow the insurance rules. You are deliberately misleading the insurer, hoping they will accept your insurance application. This is considered a form of insurance fraud.

#3 A collision or burglary in scscene

Another example of insurance fraud is staging a collision or burglary for the purpose of pocketing insurance money. It is up to the insurer to prove that it was staged. In some cases, this is not difficult, such as if a window was smashed from the inside or if there were accomplices who were willing to talk. Did a staged collision or burglary put other people in danger? If so, the punishment may be more severe than you think.