Credit Crunch prompts insurance fraud concern?

Charles Vanture

Contributor

0 CommentsPrint ArticleSubscribe

I just saw an article from the International Travel Insurance Journal where they state that the company Absolute Fraud Management is warning insurance companies that the credit crunch is causing an increase in fraudulent claims. Credit crunch prompts fraud concern

While this article addresses concerns over insurance travel fraud you can see that your local 'good neighbor' with his 'good hands' is already using this excuse as yet another reason why a claim should be denied or at least questioned.

The article stated: "A recent study that showed a 13-per-cent rise in suspicious motor claims in the past three months has served as a warning to travel insurers to be on the lookout for more fraudulent claims as consumers try to claw back some of their hard-earned cash in an effort to beat the credit crunch."

For years insurance companies have convinced us as to the importance of insurance - which it very much is - but then also warned us about making claims against our policies as this could adversely effect our rates and god-forbid our insurability. Did anyone consider that maybe with money being so tight consumers have decided not to let the insurance company slide on the smaller claims anymore because they can't afford not to? Probably not because that wouldn't fit into the companies never ending cry that they are being abused by 'greedy fraudulent claimants' with the help of their 'greedy trial lawyers'. It is a never ending battle for the consumer to constantly be questioned by insurance companies when making claims.

Ironically, if the insurance companies treated claimants fairly they would drive the 'greedy trial lawyers' out of business. But I don't see that happening anytime soon. Do you?