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Why I Hate Insurance Fraud (and why you should too)
Recently Canadian Underwriter reported that insurance fraud costs Canadian insurers over $540 million annually.  The article highlights the fact that “Insurance companies around the world are reporting a higher number of bogus claims from cash-strapped motorists, homeowners and other con artists“.
Insurance companies, however, are not the hardest hit victims of insurance fraud. Â Legitimately injured people are.
This is the reason why I hate insurance fraud. Â It’s not just that fraud costs ICBC and other insurers money. Â It’s not just that fraud compensates undeserving people. Â It’s not even that insurance fraud is a crime. Â The main reason why I hate insurance fraud is that it casts doubt on legitimate claims.
When insurance companies process thousands of claims, a few fraudulent ones will appear. Â If an adjuster deals with enough of these it’s natural to develop a level of skepticism. Â This skepticism can then go on to skew the way legitimate claims are perceived. Â This in turn results in some deserving individuals being denied their needed insurance benefits.
When insurance companies suspect fraud they have significant resources to pursue claims for damages, claimants who are denied disability or other insurance benefits are not always so fortunate.  When statistics are published about insurance fraud remember that deserving claimants are the greatest victims of this crime.
Tags: bc injury law, Canadian Insurance Fraud Statistics, Fraudulent Claims, Insurance Fraud
This site is created by MacIsaac & Company, a British Columbia Personal Injury Lawfirm. This website is not affiliated in any way with the Insurance Corporation of British Columbia (ICBC).This web site is made possible through funding provided by the British Columbia law firm MacIsaac and Company. bc-injury-law.com is designed to empower individuals to better understand their ICBC Claim and the process involved in dealing with ICBC. This web site is offered for information only and is not claim-specific legal advice. Use of the site and sending or receiving information through it does not establish a solicitor / client relationship. Links to and from this website do not state or imply a relationship between MacIsaac and Company and the linked entity.
March 1st, 2011 at 11:15 pm
[…] month I wrote about why I hate insurance fraud. Â A quick look at comments following stories of personal injury claims in the news provides […]
March 24th, 2011 at 8:00 am
[…] Now I’m no fan of insurance fraud, however, when reading stories of the high cost of insurance fraud it’s worth keeping in mind that, unlike the insurance industry, claimants who get stuck with an unconscionable settlement don’t have hundreds of millions of dollars in profits to offset the cost of a raw deal.  Also, the insurance industry (to their credit) has a good track record of pursuing civil damages to punish and discourage fraudulent conduct.  The same likely cannot be said about individuals who have their insurance claims processed in bad faith.  As always, comments and feedback are welcome. If you found this article useful please share with others: […]
January 24th, 2012 at 11:56 am
[…] readers of this blog know I hate insurance fraud.  Sometimes fraudulent claims are weeded out through investigation efforts, other times […]
March 16th, 2012 at 7:58 am
[…] you regularly read this blog you know I hate insurance fraud.  When fraudulent claims are weeded out that’s a good thing.  However, have you ever heard […]
March 17th, 2012 at 3:37 pm
Thank you Erik Magraken once again you see with your keen eyes.Claims takes place often like this and we all pay some more then others you unwilling to support thoes who make fraud claims. We all benifit dealing in truth.Nice to read this today. Hope ajusters dig a little deeper as you to locate them as we suffer with a rise in our insurance as well as you know, Eagle Eyes still at work little gets pass you still
thanks.