Beware of Insurance scams prevalent in this era.

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Beware of Insurance scams prevalent in this era.

An insurance policy is when a company or an organization provides us protection or compensation for a certain loss like damage of assets, medical iss

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An insurance policy is when a company or an organization provides us protection or compensation for a certain loss like damage of assets, medical issues, property loss, or death in exchange for premium payments. Unfortunately, this practice or arrangement is also not free from the eye of scammers. To stay ahead of the threats, insurance beneficiaries need to educate themselves about the common strategies scammers perpetrating insurance scams utilize to fool people.

Insurance can be of many types. Scammers are more prevalent on insurance platforms, which are more popular among the common people. Common insurance policies include,

  • Motor vehicle insurance
  • Health insurance
  • Homeowner insurance
  • Workers Insurance

Motor Vehicle Insurance:

Motor vehicle or automotive insurance is a contract between the insurance provider and beneficiary where insurance companies provide compensation for financial loss, accidents, or damages related to beneficiaries’ vehicles.

Scams a motor vehicle insurance scammer perpetrates:

  • Lying about the damage that already existed
  • False information about vehicle theft
  • Staged accidents and mishaps

In automotive insurance, most beneficiaries are the ones who perpetrate mischief. They deceive the insurance provider by providing false information. Sometimes they claim settlement for the damages that were already there on the vehicle; sometimes, they set up stories and reports showing that the vehicle has been stolen. Some scammers even stage accidents to claim compensation from the insurance company.

Health Insurance:

Health insurance is a contract where insurance providers ensure the beneficiaries provide a certain portion or full expenditure spent in health care in return for a certain premium.

Scams a health insurance scammer perpetrates:

  • Identity impersonation
  • Fake bills and prescriptions
  • Staging fake operations

In the field of health insurance, scams can be perpetrated by both the insurance provider and the beneficiaries. Healthcare insurance scams occur when an insurance holder lets their relatives or friends impersonate their identity and take advantage of the insurance they have opted for. Thus people use others’ insurance policies to pay health care bills and medicines.

Homeowner Insurance:

Like the other insurance policies, insurance providers here offer compensations for loss or damages that include a home or property. Homeowner insurances also include personal belongings within beneficiaries’ homes.

Scams a homeowner insurance scammer perpetrates;

  • Deliberately damaging home properties
  • Staging fake robbery
  • Exaggerating the value of properties lost in theft
  • Hiding rentals
  • Falsely adding up to the bills

Homeowner insurance scammers can scam you in many different ways. For example, they may stage a fake robbery or other damages to claim the money from the insurance and may exaggerate the value of the stolen items to fool the insurance company. Sometimes, to trick the insurer, scammers deliberately damage their property. Sometimes when they seek help from professionals in repair, plumbing, etc., insurance holders ask them to falsely add things up to their bill so that they can show it to the insurance company as supporting evidence to fool them for their benefits. Moreover, sometimes they rent their property to others but hide that from the insurance company to avail of extra benefits.

Workers Insurance:

Workers’ insurance is somehow similar to health insurance as it provides the insurance holder compensation for injuries and illness, but unlike health insurance, workers’ insurance offers insurance benefits to those who have got injured or fallen ill from their jobs.

Scams a workers’ insurance scammer perpetrates:

  • Lying about salary
  • Lying about payrolls
  • Associating other injuries with the work
  • Overstating less severe injuries
  • Lying about job roles

Workers’ insurance scams initiate when an employee who has opted for workers’ insurance lies about his salary in order to get the insurance with lower premiums. Then it continues as people stage injuries and illnesses caused by the job and create fake reports according to it. Sometimes they overstate legitimate illnesses and injuries to avail of extra benefits. Sometimes the injury or trouble happens for other reasons in other places, but insurance holders lie about it and associate it with their jobs. Employers perpetrate scams by providing false information about the company payroll in order to decrease premium payments. They also lie about their job roles for the same reason.
These scams, perpetrated by insurance scammers, are considered illegal practices. Still, scammers do not stand down from perpetrating forgery. Victims can seek help from organizations that help people recover their funds lost in insurance scams. Such organizations can be found easily on the internet.

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