Avoid Insurance Fraud At All Costs

The current economic crisis has resulted in toughsuspicious. Insurance fraud investigators contacted
times for most consumers. Consumers haveanother person who had been involved in the
been put under increased financial pressure andaccident and this person confirmed that the
this has led to greater temptation to use car andaccident had occurred at 2am and that the
home insurance claims to obtain extra money.policyholder had failed to stop after the accident.
Insurance companies have not stood by idly.The insurance company then suspected that the
Insurers have responded to this perceivedpolicyholder had been drinking before the accident
increase in fraud by demanding additionaland had tried to conceal this fact by changing the
information from policyholders and in some casestime of the accident. In order to establish the
interrogating them. This additional information ispolicyholder's whereabouts before the accident,
often quite confidential in nature and is notthey requested that he supply them with his call
supplied willingly by policyholders. Examples of thisrecords from his cell phone. The policyholder
information are bank statements, financial records,refused to supply these records and the insurer
phone records and particulars about therejected his claim based on his unwillingness to
policyholder's movements prior to incidents.supply information that was of vital importance to
Insurers believe that they are entitled to requestthe claim.
this information as most policies state that theyInsurance companies will check information that
have the right to 'additional information which is ofpolicyholders supply against the records kept by
vital importance' to fairly settling insurance claims.the police, ambulance services and others involved
Consumers on the other hand point to theirin accidents. If discrepancies are found then
constitutional right to privacy in order to counterinsurance companies become suspicious and launch
such requests. Disputes often lead to lawsuits orfurther investigations.
lengthy investigations by the insuranceAnother example of policyholders changing the
ombudsman, but the best way to avoid suchdetails of what transpired is a man who reported
situations is to be honest and to supply accuratethat his car had been stolen while he was
information to your insurer from the start.watching a movie at a mall. It was later
If an incident occurs, like a car accident or thediscovered that the vehicle had been stolen
theft of your vehicle, provide an accurate andalmost immediately after he had parked his car.
complete account of what transpired and do notHe falsely reported that he had only noticed the
try to hide or neglect to mention information intheft after watching a movie because he thought
the hope of improving your chances of filing ait would be more believable and help expedite his
successful claim.claim.
Insurance companies become very suspiciousIt is vital that you never try to anticipate what
when policyholders contradict or change theinformation your insurance company wants and
information regarding incidents. An example of thischange the details of what transpired in order to
is a real-life incident where a policyholder initially'help things along'. Always give truthful and
reported that a car accident occurred at 7pm, butaccurate information. If your insurer finds a
then later changed the time to 9pm. Finally thediscrepancy in your account of the incident, they
policyholder stated that it occurred at 2am, bywill perceive your claim as possibly being
which time the insurance company had becomefraudulent.