Insurance Fraud

Introduction: According to figures from the US Coalition Against Insurance Fraud, the foothold of claims fraud in the US alone in 1995 amounted to US$ 85.3 billion, which equates to a cost of US$ 326.47 for each American citizen. hold back for by the Rand Institute for Civil Justice in the US revealed that over one third of people injured in vehicle accidents exaggerated their symptoms, which adds US$ 13-16 billion to the annual US redress bill. Figures from the pan-European trade association, the Comité Européen des Assurances, estimate the nominated total for indemnity fraud in the 25 European countries it represents of EUR 8 billion (GBP 5.6 billion), which equals two percent of annual policy premiums. However, statistics from individual European countries suggest that this figure is very conservative. For example, grant to the Association of British Insurers (ABI) damages fraud cost the UK insurance industry GBP 650 million in 1999, 3.9 percent of claim payments, a nd as a result each insured pays an extra iv percent in insurance premiums. In Italy, 4.58 percent of all last(predicate) claims and 3.25 percent of claims paid by the five major insurers were fraudulent, jibe to ISVAP, the insurance regulator.

In contrast, estimates of insurance fraud in japan be low, but the problem of fraud identifyted by insurance company employees is serious and is growing. The types of fraud committed fate off from class of business to class of business. For example, exaggerated or altogether fabricated claims are common in survive insurance, because it is a great deal easy for the insured to commit fraud , since the alleged loss believably occurre! d thousands of miles away, making a dilate and thorough investigation gruelling and uneconomic for the insurer. In go claims, exaggerated symptoms and falsified injuries (such as through and through staged accidents) are common for third party claims, piece of music among menage claims dropping laptop computers and spilling paint on the flooring out of the blue on purpose is...If you want to get a ample essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay