Insurance fraud not usually considered to be a severe criminal offense. It is only a money-spinning scheme. There are a number of steps that you can follow as a consumer in order to prevent becoming an insurance fraud victim. You just need to apply your common sense to detect an insurance fraud.
Be a Knowledgeable Consumer: Insurance premiums are an important cost for the majority of people. They are determined on the basis of the level of risk involved and the history of your individual claims. Usually, the higher the risk, the more is the amount of premium.
Know Your Insurance Broker or Agent Well: Consumers may frequently be swindled by dishonest insurance agents or brokers and realize that subsequent to filing a claim that they don’t have any cover for their car or home. If a home which has not been insured is destroyed by fire, the landlord is entirely accountable for renovating it and repaying any mortgagees. While driving a car which is not insured, if a driver gets into an accident, any personal properties might be confiscated in case a lawsuit is filed against that driver for claiming damages. You should only work with certified insurance agents and brokers. The insurance agents and brokers should always have proof of license and you should always tell them to show it.
Comparison Shopping: Insurance premiums may differ considerably from one company to another, therefore it is better to shop around. For making comparison shopping simpler, the Insurance Department of various states issues consumer guides for homeowners, automobile, HMO/health insurance and long term care insurance that offer sample premiums for insurance companies that supply these coverages. Furthermore, the official website of the Insurance Department also includes an interactive guidebook to HMOs that helps consumers get details regarding HMOs functioning in their home county.
Where is the Policy? You must get a copy of any form of insurance policy with comprehensive details about approvals and assertions, particularly delineating the coverage and its restrictions within a sensible period following your purchase. If you have not got it, you should ask your agent or broker. If there is no acceptable clarification for the delay, you should get in touch with the Insurance Department instantly. You might not get the coverage that you have paid for.
Where is the Substantiation? You should not make cash payment for a premium. Always make payments by check or a money order directly issued to the insurance carrier or agency – not to the insurance agent or broker. Also ask for a receipt at all times.
Are You Being Charged for Services that You have Not Obtained? In case you have undergone medical or dental treatment which is covered by an insurance company or an HMO, you would get an “Explanation of Benefits” report enumerating the services for which benefits were paid. Evaluate it cautiously to make sure that your healthcare provider has not falsely raised your claim (exaggerated services offered for the purpose of getting a higher payment) or demanded payment for services that you have not got. Communicate with your insurance company right away if you think there are some disagreements. Payments for falsified claims convert to increased insurance premiums for everybody.
What If You Get Into A Car Accident? You should call up the police to visit the scene of accident and ensure that the particulars of the accident are recorded and the identities of the passengers of the other car are authenticated. Become apprehensive if the driver of the other car tells you that calling the police is not necessary. His car might not be insured or his insurance card might be fake. Automobile insurance fraud is on the rise and has become a countrywide problem. Some of the auto insurance frauds that frequently take place are steerers, staged accident and overstated claims.
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