What To Do If You’re Accused Of Insurance Fraud

Insurance fraud refers to any unrealistic or false claims made to an insurance company such as exaggerated estimates of damage or misreported or under reported information. Insurance fraud can pertain to any area of insurance from medical and home claims, to personal injuries and car collisions. In minor cases, those found guilty are given a felony charge, but in more serious cases insurance fraud can result in a jail sentence.

Due to the huge costs incurred by fraud, insurance companies take implications very seriously. It is usually beneficial for everyone that insurance companies have such strict regulations and pay close when investigating what appear to be fraudulent claims. Insurance fraud incurs costs not only for the insurance company but also for the policy holders. If the cases of fraud increase, insurance companies have to compensate but setting higher premiums.

Sometimes a policy holder may be wrongly accused of insurance fraud, usually due to a lack of evidence that arouses suspicion of the insurance company. It is important to resolve the case as soon as possible to prove the claim is real. Insurance companies almost always have more than enough resources to pursue a fraudulent case, and such matters are considered to be a serious crime as they frequently involve large amounts of money.

It is best to try to resolve everything outside of court, between just the insurance company and accused, as hiring an attorney can run up high and unnecessary costs. This is especially so when there has been a misunderstanding and the case can be solved simply through filing the appropriate paperwork or by presenting firmer evidence that the claim is real such as through medical records. The accused can further support his position by better explaining his defense against the charges and contacting any parties who can support his position.

However, sometimes the company may be disinclined to negotiate in which case it is best to seek the guidance of an attorney and take the matter to court. Attempting to represent oneself in court can cause extreme difficulties. An attorney can better advise the accused on his rights, defense procedures and other important information about the legal system in general.

It is very unlikely that an insurance company will continue to press charges when the accused is represented by an attorney as soon as it becomes clear that no fraud exists. However, first determining whether legal assistance is necessary can save a lot of time, money and inconvenience.