What To Do If You Are Accused Of Insurance Fraud

Insurance fraud is costly to the insurance company as well as policy holders. It is beneficial to everyone that companies devote dedicated departments within their firms to combat fraud. Without such close scrutiny, all parties would have to pay higher premiums due to dishonest losses.

Fraud in the insurance domain is a serious offense. There are different types of violations that get encompassed under this category. All those entities which require insurance, namely medical, home, personal injury, car collision, and personal articles, are all susceptible of being cheated. The occurring form of insurance fraud can be anything from falsified claims, falsified documents and procedures, exaggerated claims, etc. Once the insurance fraud gets proven in the court, the guilty party will have to remit the money back to the victims as well as face a felony charge on their record. The severity of the fraud will decide the duration of a prison term for the violator.

If you have gotten word from your insurance company that they suspect fraud, the first thing you need to do is find out the details of the fraud charges that have been brought against you. There are a few different ways that you can approach getting that information. You can choose to deal directly with the insurance company to get the information, or you can choose to retain an attorney to get the information for you.

There are advantages and disadvantages to both ways. If you hire an attorney, the insurance company may take a closer look at their charges against you and make sure that they feel confident that they can make a lawful claim in court; however, hiring an attorney can get to be very expensive, and if the claim is a basic misunderstanding, you might waste money by hiring an attorney.

Representing yourself is another possibility. If the insurance company provides a solid case, against you, however, you may find it better to have advice from a personal attorney. For a simple misunderstanding, an attorney is not always necessary, and you can always get their assistance later.

Once you know the charges against take a good look at the situation, on your own or with a lawyer. Is this simply a matter of lack of communication? Does the company have a reasonable case? Is this something that can be dealt with quickly and easily, or is this going to cause a lot of work? Is there a lot of paperwork involved? Do you need affidavits from professionals?

It is better for the problem to be resolved as quickly as possible, especially if the issue can be taken care of outside of court. Handling things outside of court is the best way to avoid official charges being filed against you. However, if you feel the insurance company isn’t willing to negotiate or deal fairly with you, it is better to enlist the help of an attorney and take the matter to court.

Graham McKenzie is the syndication coordinator a leading South African Insurance information website, which amongst others specialises inCar Insurance.