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Most Common Types of Personal Injury Fraud

Published at July 21, 2014 by administrator.

There are two types of personal injury fraud: hard and soft insurance fraud. Hard insurance fraud is what people often think of when then hear about insurance fraud. It is usually premeditated, and in some cases, the accident or injury is staged. An example of this will be two people using two automobiles to stage a crash, but no one is actually hurt. This type of insurance fraud will land a person in jail if they are caught. However, the most common type of personal injury fraud is the soft insurance type. This is referred to in the insurance industry as opportunistic insurance fraud.

What is an opportunistic insurance fraud? 

Although this type of fraud can be found in a variety of insurance claims, in the area of personal injury, it takes the form of an exaggerated claim of injury. In most cases, an individual will be injured, but not to the extent that they claim. This is especially true with the pain they claim to be in as it is near impossible to document the level of pain a person experiences. However, an individual will also claim that the injury has disabled them more than it actually has. This is common with back injury claims and neck injury claims.

Why do people exaggerate their claim of personal injury?

The simple answer to this question is that they do it for the money. In addition, people will often believe that if they get caught, the consequences will not be severe. In some cases, they will be right. If the amount of money is small, a claim may simply be rejected by an insurance company. However, a person can also have their policy cancelled and this can have consequences on an individual’s personal finances. If the money has already been paid, an insurance company can demand that the money be paid back. If the amount is large, and insurance company may take a person to court to get the money back.

Criminal prosecution can also happen for opportunistic insurance fraud

Even those engaged in soft insurance fraud can find themselves in a criminal court. Although it is true that this type of insurance fraud will usually be considered a misdemeanor, fines can run as high as $15,000, and this is a hefty amount for the average person to pay.
Insurance companies are ever alert to fraud, so when filing an insurance claim for a personal injury, honesty is the best policy. If you have questions about personal injury insurance fraud, contact West Palm Beach personal injury attorney the Stafford Firm today.

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