Insurance fraud is making a buzz as news of insurance scams and other dishonest schemes abound. Here at Tevis Insurance Sacramento, we will discuss how you can prevent from falling victim to insurance fraud, and how you can make sure that your insurance company can be trusted.
What is Insurance Fraud?Insurance fraud refers to any act that is done to falsely gain from insurance of any type. It can be committed by the insurance company or by the claimant.
The claimant can commit insurance fraud by trying to deceitfully get insurance benefits. The most classic example is burning one’s own house or establishment in order to get insurance claims.
On the other hand, an insurance company-initiated fraud is something bigger. A less extensive form of this is denying a claimant of benefits that he is supposed to be entitled to. The claimant should otherwise be able to get insurance claims but the insurance company denies the claim in order to save money. Imagine how many claimants are denied, and how much money is saved by the insurance company even if they are supposed to grant the claims.
The greater extent of insurance fraud is the one done by fake insurance companies. They ask money from people in exchange for benefits that they’ll make you believe you are entitled for, but really, you are not. What’s worse is that you do not know that you’re under a scam until it’s too late – just when you need to make a claim your contact is gone… and with your money too! This article will focus more on this type of insurance fraud. We want to help you detect a fake insurance company in order to save you from all the trouble, and to save you from losing your money as well.
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