Insurance scam or insurance fraud happens when someone commits to deceive an insurance process. The insurance industry collects more than $1 trillion in premiums each year and because of this, it makes it a target for existing fraudulent activities. Australia is among the countries that contributes well to this premium.
You would think getting a third party car insurance is as easy as acquiring car insurance quotes from several insurance companies or just getting a car insurance quote from your favourite auto insurance broker and voila! You’re all set. But no, circumstances that follow after securing a car insurance, for instance, matters more than just getting your comprehensive car insurance quotes. There are different types of insurance fraud but there are five most common types that are affecting the insurance industry in today’s world: false claims, disaster fraud, faked death, and insurance company fraud.
The top one type of insurance fraud is false claims. As the name suggests, it happens when claims are made for an accident that never happened or even staged. For example, when one buys a house insurance for a property that is of high value and on top of that, the owner also gets a home and contents insurance, and then stages a phony burglary and faking the theft and damage to property. Homeowners insurance fraud is a serious crime as with any other insurance fraud. False claims also happen with travel insurance as well as with business insurance.
Insurance fraud has existed since insurance also existed commercially. When an insurance company\'s fraud section examines a fraud claim, they often progress in two stages: pre-contact and post-contact. And while many has already attempted to do small and big scale of insurance fraud in Australia, it is important to note that authorities have also established an efficient way to detect insurance fraud.