Whilst Travel Insurance is meant to be a safety net for unforeseen circumstances and losses, there will always be opportunists who try to file fraudulent or exaggerated claims after a trip with the hope of getting some extra cash or in the extreme case, a huge windfall. This article is about how to scam an insurance company.
Opportunist approach in scamming an Insurance Company
The small-time opportunist usually makes false declarations of missing items or submits a non-travel related medical claim with the hope of making a quick buck. Some get away with it whilst others back off when the insurer follow-up with probing questions. For the bigger fraud cases, there will invariably be tell-tale signs which will trigger an in-depth investigation.
It may sound silly to some but a typical fraudster intending makes dubious Travel Insurance related claims, usually buy several insurance policies before the trip. He will then go through great pains during the overseas trip to get the necessary reports from the authorities or medical establishments to substantiate the claims to be made. The fraudster will then make separate claims to each insurance company with the hope of getting separate pay-outs from each insurer.
How to catch fraudsters from making money on Travel Claims
In one such case, the fraudster filed multiple claims with the different insurance companies for emergency medical treatment received in an accident during the trip. There was a police report made regarding the accident and medical bill (amounting to several tens of thousands of dollars) were submitted for the medical treatment. The documents appear to be in order but there was one catch, the medical treatment was paid for in cash. Who brings so much cash for an overseas medical treatment? Investigations revealed that the fraudster had planned to go on the trip to carry out the medical treatment for an existing problem and make multiple claims after his return.
If the insurance companies need to spend more resources to investigate dubious claims, the increase in cost will ultimately go back to the consumer.
Be sure to cover your self whenever you are travelling. If something happens, you can submit a valid claim with your Travel Insurance company.