We Make You Insurance Smart

Introducing insurance frauds

The alarming growth rate of the fraud cases in the insurance industry have made life miserable. People keep complaining about the fakes in which they get trapped very often. Thus many a times it becomes a hard time for people to claim their insurances in a smooth and proper manner. For our own convenience,thereby, we have started to count fraud as a important aspect to be discussed.

Frauds can be of two types

Hard Frauds:

Hard frauds occur when the policy holders and the agents team up or individually deceives an insurance company for its money.Similarly it can happen the other way round, where the insurer and the brokers might team up and deceive the policy holders of their claims. Earlier such crooks used to operate single-handedly in the developed countries. But now with the advent of new systems, more and more of organized crimes are coming into the picture.

Soft Frauds:

Soft Frauds refer to those white lies which have become a part of our everyday lives. People often get tempted to pour out white lies in order to fetch the smaller benefits in life. But in reality such attempts often cause them to lose their cause in the long run. A lady might just exaggerate the magnitude of an accident through her words or exaggerate the distance that she gets to cover with her car everyday. This might reduce her premium rate for the time but it takes it toll in the long run and even may see her policy getting annulled in the due course of time.

Direction of Frauds

The direction of frauds can be described in the following ways:

• Holder --> Insurer
• Insurer --> Holder
• Holder + Agent --> Insurer
• Insurer + Agent --> Holder
• Agent --> Insurer
• Agent -->Holder
• Holder -->Agent
• Insurer --> Agent