Inhumanity of insurance fraud

Sicko is a film that mainly focuses on health insurance fraud in America. This documentary has a tongue in cheek approach highlighting the concerns that people have to face when in a position of fraud. There are many cases where people have fallen victim to fraud and it has left them destitute and worse off the than before the actual claim. There are also many instances where fraud was committed against the insurance company which really isn’t a good thing either. The biggest problem with insurance fraud against companies is that rates are automatically higher. This means that clients who didn’t commit fraud needs to pay extra on their insurance premium. Click here for more info on Sicko.

When taking a closer look at insurance fraud and its impact we see that it causes a serious financial loss for individuals, companies and the government. It is quite simple to avoid, when entering into a contract with an insurance company the insured and the insurer agrees to always disclose truthful information. When this line is crossed the trust relationship is broken. Today with recorder phone calls and emails it is almost impossible to commit fraud easily. A conversation on the phone is counted as a contract and anything that is said is binding. Most people forget this.

Inhumanity of insurance fraud

Then there are those cases where the insured gets defrauded and their income and savings gets delved into without their permission. This is tragic because many retirees have fallen victim to a smooth talking insurance sales person and entrusted all their life savings only to find out that it was a fly by night operation. In this regard it is time once again for us to get in touch with our humanity and do what is right. Even though we might feel tempted to claim for a slightly larger TV it is not the right thing to do.

To avoid any issues or becoming a victim of insurance fraud make sure you always stay in touch with your insurer. If the value of your assets increase let your insurance company know so that you will always be correctly insured and never suffer from a repudiated claim. Take a look at Homeowners insurance quotes Florida for a comparative quote on your home insurance. You might be able to start a whole new policy that caters for your needs at a better rate. Another danger of insurance fraud is that it directly influences tax payers.

The moral of the story is that before entering into any insurance agreement both parties needs to be well informed and completely at ease with the arrangement. There might be cases where insurance companies refuse to cover certain individuals because of a bad claims history and on the other hand there might be clients that refuse to sign up with certain insurance companies because of a bad reputation when it comes to claims settlement. Do sufficient research about the company you are looking at and click here to read more about choosing the right insurance company for you.

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