Question

What are the two general categories used to classify types of insurance fraud and what would be some of the real examples (cases)?

Answer 1

Insurance frauds is that kind of frauds which involves money and nowadays which the help of internet it has gone to another level.Frauds are done to take an unwanted advantage of the money and other offers for which they are not applicable to do. Life insurance, healthcare insurance, automobile insurance etc are some insurances where most frauds are done. Most of the frauds occurs at application of life insurance where people tends to pay money in order to get cheaper premium but denies most of the time. As nowadays most of the insurance are done online so there are alot of chances of theft and mishappening. In many cases of life insurance, people involve fake death to claim the benifits of life insurance and moreover they also turn up after few years of disappearing and they claim that there memory was lost. Most of the time this happens and people try to take unwanted advantage of this scheme. This is considered as a fraudulent activity in the eyes of law and strict punishment should be given to these fraudsters. Other insurance fraud can be done in health insurance as people try to show fake death, fake accidents to claim the insurance money. A proper checking should be held before giving any insurance money to people because you may find some fraudsters in these kind of cases.

Real examples was that a rabbi man was founded guilty in insurance fraud of more than 450 US dollars and was sentenced for 845 years.