Whether you are driving a vehicle on public roads or operating a business, insurance is often a requirement. Insurance can also be voluntary and provide a peace of mind to people on something as minor as booking travel arrangements. Insurance gives people peace of mind to know that in unforeseen events costs will be covered by a third party and not put you in a financial bind. Unfortunately, some people see insurance as easy money.
Insurance fraud happens when people try to take funds from insurance companies that they are not entitled to receive. Insurance fraud has a significant impact on its victims as well as all consumers of insurance. The impact of insurance fraud drives up insurance prices and consequently raises prices for goods and services. It is important to be able to recognize insurance fraud and some examples include:
- A driver and a body shop worker agree to inflate the auto damage claim and either share the “profit” or have the deductible waived.
- A homeowner falsely claims that their home was burglarized and that valuable items were stolen.
- A doctor bills an insurer for services that were not provided.
- A driver stages a fake accident, and unscrupulous doctors and lawyers help “handle” associated medical claims and lawsuits.
- A worker collects worker’s compensation benefits while employed.
Even though you are not directly footing the bill, if you see one that is abnormally high or if you feel like people are inflating the facts of their story, you may be witnessing insurance fraud. While it may not seem to affect you directly, it is important to realize that when insurance companies pay out higher amounts, they must recoup that money through higher premium rates. Higher premium rates mean that people who are required to have insurance will automatically experience great costs to operate their business. With greater costs of operations comes the greater cost of goods.
Insurance Fraud, regardless of the degree, rarely is a stand-alone crime. For example, a person seeking to obtain money and who fills out paperwork fraudulently may face Grand Larceny charges and allegations of the falsification of certain records. If you have been accused of insurance fraud, you need a skilled white collar crime defense attorney on your side as soon as possible, as the consequences of a conviction may be serious.
Call a New York Insurance Attorney For a Free Consultation Today.
If you are under investigation or have been arrested on suspicion of insurance fraud, you should call a New York defense attorney for help. Please contact the Law Office of Stephan Jacob Siegel at 718-575-3900 for a consultation today.