Insurance frauds are very common today and there are different types of insurance frauds. There are insurance frauds as well as auto frauds. Frauds are present in every part of insurance and investments. Their main motto is to have lump sum financial gain. They can ruin you and leave you bankrupt on the street.
There are two types of insurance frauds. One is soft fraud and the other is the hard fraud. The soft fraud occurs when an insured party initiates an already legitimate claim. For example, an insured party is involved in a car accident and claims that more damage is done to the vehicle than what is true. The soft fraud can even happen at the beginning of a new insurance policy, when an individual purchasing a policy misrepresents their actually situation in order to get a lower premium.
On the other hand, hard fraud is when someone plans a loss to receive an insurance payout. A similar example happened in the year 2002, where a man disappeared in a canoe trip. His family collected his life insurance and he reappeared again in the year 2007 with reported memory loss.
The auto insurance fraud is also very common. In the year 1996, 36 % of auto insurance claims were fraudulent in nature. Many times, people claim for an injury that actually did not happen at the time of the accident. These types of insurance related frauds and scams are common and they are increasing day by day.
Insurance fraud is a real time problem today. It is necessary to understand all the schemes and plans before putting down your signature on the paper. Companies like Kobian Financial provides reliable means of investment, yet a sound knowledge about the company and investment returns keeps you on the safer side
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