Insurance fraud is any act committed with the intent to obtain a fraudulent outcome from an insurance process. This may occur when a claimant attempts to obtain some benefit or advantage to which they what is the differ between forex other profession not otherwise entitled, or when an insurer knowingly denies some benefit that is due. Insurance fraud has existed 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 diverse, and occur in all areas of insurance. An accident too common in this city destroyed it. Doesn’t it seem, I pray, That you set fire to your own house, Tongilianus? Insurance contracts provide both the insured and the insurer with opportunities for exploitation. According to the Coalition Against Insurance Fraud, the causes vary, but are usually centered on greed, and on holes in the protections against fraud.
Often, those who commit insurance fraud view it as a low-risk, lucrative enterprise. Another reason for fraud is over-insurance, when the amount insured is greater than the actual value of the property insured. This condition can be very difficult to avoid, especially since an insurance provider might sometimes encourage it in order to obtain greater profits. Insurance companies are also susceptible to fraud because it’s possible for fraudsters to file claims for damages that never occurred.