Soft fraud accounts for almost all of fraudulent auto-insurance claims. A real accident may happen, but the dishonest owner may take the opportunity to include a whole range of previous minor damage to the vehicle into the garage invoice related to the real accident. Personal accidents may be exaggerated, notably whiplash.
If you’re not doing an excellent job of explaining what they should be paying you, they have no fiduciary obligation. An incident that occurred on Golden State Freeway June 17, 1992, brought public consideration to the existence of organized crime rings that stage auto accidents for insurance fraud. These schemes generally consist of three totally different levels. At the top, there are the professionals—medical doctors or legal professionals who diagnose false injuries and/or file fraudulent claims and these earn the majority of the earnings from the fraud. Next are the “cappers” or “runners”, the middlemen who acquire the vehicles to crash, farm out the claims to the professionals at the prime, and recruit participants.
A “recruited” doctor diagnoses whiplash or other delicate-tissue injuries which might be onerous to dispute later. It is hard to place an actual value on the money stolen via insurance fraud. Insurance fraud is intentionally undetectable, not like visible crimes corresponding to robbery or murder. As such, the variety of cases of insurance fraud which might be detected is far decrease than the variety of acts that are truly dedicated. The greatest that can be carried out is to offer an estimate for the losses that insurers undergo as a result of insurance fraud.
What Should I Do After An Accident?
The Coalition Against Insurance Fraud estimates that in 2006 a total of about $80 billion was lost within the United States due to insurance fraud. According to estimates by the Insurance Information Institute, insurance …