Effects Of Insurance Fraud Orange County CA

السبت، 29 أكتوبر 2016

By George Anderson


Insurance companies are intended to protect people and property from deleterious effects of a peril. However, there are those culprits who work tirelessly day night, to deceive such well-intended companies for their own gain. Such deceitful deeds are called insurance frauds. The governments and the concerned industries are also working hard to come up with ways and methods to prevent such acts. This is evidenced by coming up with fraud bureaus. Indeed, these efforts have helped abundantly in their effort to reduce Insurance Fraud Orange County CA.

It is important to note that even insurance companies, do commit these kinds of frauds by either intentionally or accidentally denying policy holder, compensation when one should be compensated. This clearly shows that these kinds of dishonest deeds affect the society at large and not just the concerned sector. This means that any party, caught with such intention ought to be punished harshly to set good examples to others who may be having same kind of intention.

At times, perpetrators of such incidences are normally claimants and also employees of company, which is the service provider. This is usually done with intention acquiring what one should not acquire. These kinds of frauds have been in existence since the commencement of industry. Some of most common deeds include fee churning, premium diversion and also the asset diversion.

Almost every insurance company has dealt with fraudulent claims. In other words, they are very common deeds nowadays. They are increasing at a phenomenal rate and appropriate steps ought to be taken to deter their negative impact. This will ensure that the industry will not collapse but flourish. Criminals tend to utilize any chance that may occur to the maximum so that they can benefit. Through these kinds of criminals, insurers lose a lot of money.

People who perform these kinds of claims do it in a manner that is quite hard to detect. In other words, some of lies made to insurers seem to be real to the extent that they cannot detect. In fact, only a small proportion of fraudulent deeds are detected while the rest go undetected. This vividly shows that numbers provided by industry and other concerned organizations, as losses incurred are only estimates.

Frauds in this industry are normally classified into two. Hard frauds occur when a parson whose property has been insured either against fire, burns the property deliberately so as to acquire benefits of compensation. This is a common act through which huge sums of dollars are stolen from insurers. The other one is soft type. This is very common than the hard type. Here policy holders exaggerate losses incurred to acquire more compensation.

Other common frauds are experienced in life insurance, whereby, someone may be said that he or she is dead while not. This is done so that beneficiaries can be given the amount. In addition to that, an individual may intend to burn a house intentionally when the house has been insured against the same peril so as to be compensated.

It is true that there are penalties that those caught perpetrating the act ought to face. Indeed, there is no exact set magnitude of a penalty since it varies depending on the degree and amount of money acquired through the act, and also the history of concerned defendant.




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