Insurance Fraud

Introduction: According to figures from the US Coalition Against Insurance Fraud, the price 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. escort 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 nominative 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 indemnification premiums. However, statistics from individual European countries suggest that this figure is very conservative. For example, restrain to the Association of British Insurers (ABI) policy fraud cost the UK insurance industry GBP 650 million in 1999, 3.9 percent of claim payme nts, and as a result each insured pays an extra iv percent in insurance premiums. In Italy, 4.58 percent of any last(predicate) claims and 3.25 percent of claims paid by the five major insurers were fraudulent, submit to ISVAP, the insurance regulator.

In contrast, estimates of insurance fraud in japan argon low, but the problem of fraud layted by insurance company employees is serious and is growing. The types of fraud committed redress off from class of business to class of business. For example, exaggerated or altogether fabricated claims are common in endure insurance, because it is a great deal easy for the insured to commit fraud, since the a! lleged loss believably occurred thousands of miles away, making a expand and thorough investigation gruelling and uneconomic for the insurer. In push back claims, exaggerated symptoms and falsified injuries (such as through and through staged accidents) are common for third party claims, piece of music among theatre claims dropping laptop computers and spilling paint on the flooring unintentionally on purpose is...If you want to get a replete essay, order it on our website: BestEssayCheap.com

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