Fraud is the main problem for all type of insurance policies, it is estimated that in 2011 alone the South African insurance industry had around 10 billion fraudulent claims. It is unknown how many billions were lost to fraudsters who were not caught who faked their own deaths and diseases for insurance money.
Other forms of insurance frauds that people commit sometimes without even realising, is lying to their insurer when taking a cover. If you are found to be guilty, your insurer can take legal action against you.
Many people lie especially when they take on a lifecover, most cases reported are of those people with serious illnesses. The cover asks you to outline when last you were hospitalized or have you been hospitalized in the last 12 or 6 months, if you have don’t state otherwise because if something happens to you and your insurer finds that you have lied your claim will not be paid out.
Some people go as far as injuring themselves in order to claim from their insurance this by all means is a crime. Insurance is there for you in case something unexpected happens to you or your family members. Things like death, disability and retrenchment.
Some exaggerate their claims so they could get more money from their insurance, the minute you decide to defraud your insurance a thousand other people are thinking about it too and some are already in action defrauding, think about how many honest citizens lose because of the few that are corrupt. To be clear insurance fraud is expensive it is estimated that almost 15% is factored into your monthly premiums.
What happens if you rip off your insurer?
Insurance companies get more claims and they start loosing profits that leads to fund increases, that means millions of other people suffer because of you.
If your fraudulent claim goes through there are chances that a person who really needs that money can have their claim delayed because you have taken the money that was suppose to go to them.
The insurance company takes forever to clear claims because they are checking and re-checking every claim people who are honest about their claims wait longer.
Most importantly if you are caught you will go to jail.
To set up any insurance plan, please contact 1st Corporate Asset Management at 0861 11 14 15