Insurance Fraud Investigations - Latest Innovations Add Sheen To Insurance Fraud Investigations

A request for conducting insurance fraudpractitioner had created or re-created the client
investigation is made for by either of the twoservice records to falsify the accounts, increase
parties to an insurance policy, viz. the consumerthe number of visits made by the clients for
and the insurance company, when one of the twoseeking consultations, thereby indulging in
parties feels that the other party has committedincreasing the revenue per visit from the client,
a breach of contract, or the contractual obligationsand indirectly increasing the market price of the
agreed to between the parties have not beenclient visits to the medical practitioners.
fully met.With regard to auto insurance fraud claims, the
There are a number of insurance schemesinsurance fraud investigations are centered around
offered by the insurance companies to thethe damage estimates and claims filed in the claim
consumers including medical insurance or healthform. The insurance fraud investigations will then
insurance, automobile insurance, life insurance, cropbe concentrated on the comparison of the claim
insurance and such other types of insurance.with similar claims in the past that were available
The opportunity for fraudulent activities inin-house in the investigator~{!/~}s office. The
insurance industry is more as the room fortype of damages claimed for the vehicle and the
making quick money is more. For instance, in theamount charged for repairs for the vehicle,
US, it has been estimated that as much as $80quoted by the auto mechanic, also offers valuable
billion is paid out every year towards fraudulentclues with regard to the damages, when
claims.compared with similar case histories from the
The role of insurance fraud investigations is crucialdatabank available at the investigations house.
in assessing the validity of the claim, discouragingThe sophisticated methods employed by the
fraudulent claims and bringing the culprits to court,investigators in investigating frauds related to
and providing relief to the aggrieved parties.insurance frauds have resulted in decreasing the
The type of investigations being carried out fortime lag between the lodging of the claim and the
each type of insurance varies in type and analysis.delivery of verdict. However, the prevalence of
In the case of medical health insurance frauds,insurance frauds in the industry, on the whole, has
insurance fraud investigations are carried out frombeen rampant, considering the lure of quick
the database to get hold of the medical history ofmoney, which is available in the insurance industry.
the client~{!/~}s service history records. TheIt is advisable for both the consumers as well as
pattern of billing of the medical health practitionerthe insurance companies offering policies to the
is examined in detail to find out for any anomalyconsumers to act in accordance with the rules
in the billing. A detailed study of the serviceand regulations that are in vogue in the region,
records, in most of the cases in medical healthand avoid insurance fraud investigations.
insurance fraud investigations, reveals that the