Insurance fraud

Insurance fraud

 False insurance claims are insurance claims filed with the intent to defraud an insurance provider is said to be fraud.
Fraudulent activities affect the lives of innocent people, both directly through accidental or intentional injury or damage, and indirectly as these crimes cause insurance premiums to be higher. Insurance fraud poses a significant problem, and governments and other organizations make efforts to deter such activities.
Losses due to insurance fraud

It is hard place an exact value on the money stolen through insurance fraud. Insurance fraud is deliberately undetectable, unlike visible crimes such as robbery or murder. As such, the number of cases of insurance fraud that are detected is much lower than the number of acts that are actually committed.The best that can be done is to provide an estimate for the losses that insurers suffer due to insurance fraud. The Coalition Against Insurance Fraud estimates that  a total of about $80 billion was lost in the United States due to insurance fraud. According to estimates by the Insurance Information Institute, insurance fraud accounts for about 10 percent of the property/casualty insurance industry’s incurred losses and loss adjustment expenses.
Hard vs. soft fraud
Insurance fraud can be classified as either hard fraud or soft fraud.

Hard fraud occurs when someone deliberately plans or invents a loss, such as a collision, auto theft, or fire that is covered by their insurance policy in order to receive payment for damages. Criminal rings are sometimes involved in hard fraud schemes that can steal millions of dollars.

Soft fraud, which is far more common than hard fraud, is sometimes also referred to as opportunistic fraud.This type of fraud consists of policyholders exaggerating otherwise-legitimate claims. For example, when involved in an automotive collision an insured person might claim more damage than actually occurred. Soft fraud can also occur when, while obtaining a new health insurance policy, an individual misreports previous or existing conditions in order to obtain a lower premium on his or her insurance policy.
       Such frauds should be punished hard by government who does not care about others life and property .Such people are selfish and are ready to do anything in the name of money.So we all people have to be aware about such people and  be safe.Police should also be strict and be ready to arrest such fraud  who are cheating people acting like being truthful .So government should take such matters seriously and should provide rights and duties to citizens by punishing such frauds.