Can You Really Trust An Insurance Investigation?
You wont be surprised to learn that insurance fraud increases during a recession because more people are desperate to find money under any circumstances and many believe that an insurance claim is a good way to bring some funds into the household bank account, which the homeowner can then spend as they choose.
The downside to people making fraudulent insurance claims is that everyone will find an element in their annual insurance policy premiums to cover the illegal insurance claims, which is why an insurance investigation is no longer a rare activity.
This is similar to the way a sweet shop will add a few pence to the sale of every chocolate bar to cover themselves over the long term against people stealing bars of chocolate from the shop, because they know that is going to happen to a certain degree.
Insurance Companies are in Business to Make Profits
Insurance companies are in business to make money, but they will only continue in business when they are able to pay out properly, on insurance claims. They need to estimate the amount of claims they expect to receive in a year, add on their expenses and profits and then they can estimate the charges for insurance. For each fraudulent claim that they pay out on, the insurance company will need to recover this money in premiums the next year.
An insurance investigation sets out to determine whether fraud is taking place or not. Many insurance companies hire private investigators to work for the insurance company and investigate claims and report their findings back to the insurance company, who will make the final decision on whether the claim is paid or not.
Insurance Investigations are on the Increase
Apart from those involved in illegal activities an insurance investigation benefits everyone else. From the insurance companys point of view, they can be assured that they are really paying out on successful claims that have proved to be justified. From a policyholders observations, when an insurance company is not paying out on fraudulent claims, the premiums for insurance can be somewhat lower.
Most policyholders wont be part of an insurance investigation during their entire lifetime, but when a company does decide that your claim requires proving or disproving, there is a tendency for the policyholder to feel slighted by these actions, particularly if they know that their claim is 100% genuine.
Nevertheless, by telling the truth, the policyholder will be able to prove during the insurance investigation that they havent made a fraudulent claim and providing they have acted reasonably, all parties will be satisfied at the end of the investigation.
The insurance companies will ask a private investigator to conduct an insurance investigation when insurance adjusters, acting for the insurance company, find a case that is out of the ordinary compared to similar claims, or maybe appears suspicious because it lacks relevant information. Some claims are obviously fraudulent, particularly those people whose fridge breaks down every 12 months and they lose twenty four 8 ounce fillet steaks every single time and have thrown the defrosted meat out, before anyone gets a chance to see the proof.
The nature of an insurance investigation may cause the insurance company to alert the police if they are sure that someone is conducting an insurance fraud, but for the rest of us, the examination is purely a process where the truth will out at the end - or you can report the matter to the insurance ombudsman.
The downside to people making fraudulent insurance claims is that everyone will find an element in their annual insurance policy premiums to cover the illegal insurance claims, which is why an insurance investigation is no longer a rare activity.
This is similar to the way a sweet shop will add a few pence to the sale of every chocolate bar to cover themselves over the long term against people stealing bars of chocolate from the shop, because they know that is going to happen to a certain degree.
Insurance Companies are in Business to Make Profits
Insurance companies are in business to make money, but they will only continue in business when they are able to pay out properly, on insurance claims. They need to estimate the amount of claims they expect to receive in a year, add on their expenses and profits and then they can estimate the charges for insurance. For each fraudulent claim that they pay out on, the insurance company will need to recover this money in premiums the next year.
An insurance investigation sets out to determine whether fraud is taking place or not. Many insurance companies hire private investigators to work for the insurance company and investigate claims and report their findings back to the insurance company, who will make the final decision on whether the claim is paid or not.
Insurance Investigations are on the Increase
Apart from those involved in illegal activities an insurance investigation benefits everyone else. From the insurance companys point of view, they can be assured that they are really paying out on successful claims that have proved to be justified. From a policyholders observations, when an insurance company is not paying out on fraudulent claims, the premiums for insurance can be somewhat lower.
Most policyholders wont be part of an insurance investigation during their entire lifetime, but when a company does decide that your claim requires proving or disproving, there is a tendency for the policyholder to feel slighted by these actions, particularly if they know that their claim is 100% genuine.
Nevertheless, by telling the truth, the policyholder will be able to prove during the insurance investigation that they havent made a fraudulent claim and providing they have acted reasonably, all parties will be satisfied at the end of the investigation.
The insurance companies will ask a private investigator to conduct an insurance investigation when insurance adjusters, acting for the insurance company, find a case that is out of the ordinary compared to similar claims, or maybe appears suspicious because it lacks relevant information. Some claims are obviously fraudulent, particularly those people whose fridge breaks down every 12 months and they lose twenty four 8 ounce fillet steaks every single time and have thrown the defrosted meat out, before anyone gets a chance to see the proof.
The nature of an insurance investigation may cause the insurance company to alert the police if they are sure that someone is conducting an insurance fraud, but for the rest of us, the examination is purely a process where the truth will out at the end - or you can report the matter to the insurance ombudsman.
