Insurance fraud happens when someone lies or cheats to get money from an insurance company. This can be done by customers or even by agents and hospitals.
Some common types include:
- Faking a death or illness to get a claim.
- Staging a car accident or fire.
- Giving false documents or hiding health conditions.
- Agents selling fake policies or overcharging.
Insurance fraud increases costs for everyone and causes delays in real claims.
To avoid fraud:
- Always buy from trusted agents or official company websites.
- Read your policy documents carefully.
- Keep records of all payments.
- Report any suspicious activity to the insurance company.
Being careful protects your money and helps the whole insurance system stay honest.
