Ever since insurance was invented, so was insurance fraud. There are many types of fraud, from life insurance fraud to auto fraud. This article is very beneficial for those people who have insurance since it will give them an insight of what fraud really is.
Most of the time, when someone commits fraud, it is for financial gain. Because of the nature of insurance policies, they are rife with potentials for exploitation. Aside from inflating the value of the lost item, insurance policies are commonly exploited by individuals claiming more loss than what they have gained. Know about insurance investigator here!
Insurance fraud comes in two classifications which are known to be soft fraud and hard fraud. Among the two classifications of fraud, the common one is the soft fraud or can also be called as opportunistic fraud. This type of fraud occurs when an insured party inflates an already legitimate claim. Soft fraud may happen if an individual does not tell the truth, for example, an individual was involved in a car accident, then he will claim that his vehicle had more damage than it actually has. A soft fraud can happen at a distinct time, for example, an individual purchased a policy and has misinterpreted the actual situation just to get the lower premium, if this happens, then, the soft fraud can happen at the start of a new insurance policy. Another example of this kind of fraud is those people who buy a car insurance policy, however, they do not tell the truth about the number of miles on the vehicle just so that they can get a lower premium.
Hard fraud is when someone plans a loss to receive an insurance payout. This type of fraud is usually executed with a fire, “stolen” automobile, or similar that the individual plans themselves. Sometimes entire crime rings are devoted to hard insurance fraud. Know more about investigator at http://www.ehow.com/how_8753_become-private-investigator.html.
It is undeniable that one of the most popular fraud there was is the auto insurance fraud. It is estimated that in 1996 as much as 36 percent of auto-insurance claims were fraudulent in some way. Soft fraud in auto insurance fraud includes what was mentioned above, but also situations where a person claims an injury that did not actually occur during the accident in question, or if someone registers their automobile in a location that the insurance is less expensive. For example, a person who lived in an urban area will opt to register his car to a rural area in order to gain a lower premium. Contact fraud investigator to know more!