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Can you stop insurance fraud padding?

On Behalf of | Jul 24, 2023 | Personal Injury Defense

When individuals try to defraud insurance companies when making claims, the impacts are prominent.

There are different types of fraud schemes when it comes to this. One such scheme? Insurance fraud padding. This involves individuals submitting claims for personal injury cases and trying to gain more compensation than the value of the claim.

The impact of fraud

The Insurance Information Institute cites a 2022 study by an insurance fraud prevention group. This study showed that intentional fraud cost consumers roughly $308 billion in numerous industries.

Review the scene

It is not impossible for someone to stage the scene of an accident when trying to defraud insurance. Review the scene for signs of staging. This can include things like:

  • Car accidents caused when one car signals another to move into their lane and then hits them
  • When multiple passengers do not complain about injury until police arrival
  • When drivers put on the brakes without warning in situations that do not call for it

Inspecting the scene for these signs of staging may prevent fraudulent personal injury cases.

Review the reports

When someone wants to pad their claim, they often exaggerate their injuries. They might claim invisible damages like post-traumatic stress disorder as well. An in-depth and frank interview of these claims will often benefit insurance companies in ensuring that they make the right decision.

On top of that, individuals who may also ask for others to fake documentation for them, which can lead to legal issues for the accomplice, as well. Thus, it is better for everyone to avoid any participation in these schemes.