The Need And Importance Of Avoiding Insurance Claims

By Author: Mark Bennett
Total Articles: 109
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The insurance business is one that involves a lot of cash dealing. So naturally, what happens is there are many people who try to make money illicitly out of this business by duping other people. Also they ensure that the people whom they dupe will not get their dues. Seriously, they are clever people who maneuver tricky and unidentifiable methods to deceive other people.

There are many people among us who have been a part of this insurance scam or could get into one. If so, you really need to make sure and avoid such scams. So now the thing is how do you make sure that you don't fall for such devious scams. The basic precaution is making sure that you use your head. You have to be knowledgeable and suspicious about what kind of insurance you want and how it is going to be useful for you. A fraud scheme is not only damaging for the customer, but also for the insurance company whose name is used.

The basic reason why such fraud activities happen is because of the trust. Now it is quite natural for people to be more comfortable around those belonging to the same background or knowing the same language. It ...
... helps the scam artist to easily take you for a ride. It is common among us to do dealings and business with someone whom we know or referred by relatives, friends or co-workers.

It is important from your side to make sure that the insurance agent or the company you take insurance is really trustable. Always try to check them out. One basic method what they use is taking a fake policy. These fake policies will have lots of offers that will just mesmerize you. So what you need to do is before you check the policy, make sure that the company is licensed to do the business and also the paperwork and the policies are legal or not.

The warning sign for this scam which you should identify is when the broker doesn't give you any detailed information about the policy or the insurance company. In this case, you should try to use your common sense and make an inquiry about the insurance company and also check whether it is licensed or not. You can check it online as there are many sites that will help you to know more about the company and you can even check the ratings on it.

Also, insurance fraud could also lead to premium fraud. This is a usual thing that happens when agents or brokers keep the money for themselves that are paid by the policy holder. So instead of sending it to the insurance company, they use the money for their own good. What happens is that since the money is not paid, this results in no policy being issued and may cause the existing coverage to be canceled.

You could also get the warning sign after you sign the insurance policy paper. How? Well it is simple. After you sign for an insurance and pay the payment, you are supposed to get the policy by mail. Sometimes you can also get a mail saying that your insurance policy is cancelled due to the non-payment when you have already made the payment.

Insurance schemes are the most common methods of fraud. It is easy and the most convenient method, as people get easily carried over policies that offer them a lot of returns at a reasonable price. In US alone there are almost many insurance scams happening every day. People have to be made aware and use their logical thinking skills to avoid jumping into such insurance scams.

Being a freelance writer and active blogger, Mark likes to share his thoughts with the rest of the world and to sources out some great Offers of various service providers. According to him, insurance scams are one of the most prominent scams in the world.