what is an insurance fraud

What is insurance fraud?

Learn about Insurance Fraud with Ocean's 8

What is insurance fraud?

Insurance contracts are those that enable individuals or entities to receive financial protection. Insurance fraud can occur from either the buyers’ side or the sellers’ side. From the buyer’s perspective, it occurs as falsified or exaggerated claims. It can include murder, theft, or kidnapping. Fraud can also occur from the seller’s perspective, where the policy is sold from a nonexistent company or with wrong information.

Let’s watch a scene from the movie Oceans Eight that shows an insurance officer investigating the theft of a necklace.

Movie Case Study

A $150 million necklace by Cartier was stolen during the Met gala event. Later, a duplicate was returned to Cartier. This carrier then assigned this insurance investigator to bring back the real necklace.

How does Insurance fraud occur?

Insurance fraud can occur in many places and in many designs. It can be in the form of false claims where the intention is to obtain money. This can also look like an exaggerated claim from a party. It can also come in the form of staged accidents, where parties want to claim benefits from insurance.

Many times, investors lie about their insurance policies to evade paying high insurance premiums; this too is an insurance fraud that can occur. In the medical industry too, we find many inflated bills to claim health insurance for the services that were never provided.

Fraudulent and fake documentation is quite common when exaggerated insurance claims are filed, and that’s why investigating officers are assigned to check the credibility of the situation.

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