Insurance helps people hedge their bets against all kinds of misfortune. Of course, if you own a motor vehicle, you are aware of the requirements for purchasing auto insurance. We are all now required to have health insurance as well. Beyond that, it is possible to get property, valuables and even pets insured.
As long as a policyholder abides by the conditions of his or her policy, an insurance company should pay on a legitimate claim. However, problems can occur if a policyholder in some way misrepresents the details of a claim. Attempting to receive payment on an inaccurate or illegitimate claim is known as insurance fraud. Anyone caught engaging in insurance fraud could face criminal charges.
Typically, incidents of insurance fraud fall into one of two broad categories. Soft insurance fraud occurs when a policyholder fudges a bit when making a claim. For example, let's say a policyholder has insurance to cover home break-ins. If, in order to maximize a claim after a burglary, the policyholder overstates the value of a TV that was stolen, that could be considered an act of soft insurance fraud.
The other form of insurance fraud is called hard insurance fraud. This kind of fraud encompasses incidents where a policyholder makes a claim for a faked accident or other act of misfortune.
People commit acts of insurance fraud for a variety of reasons. Some may be in need of money and see insurance as a means to an end. Others simply make mistakes when filing claims. Other people may think that because insurance companies have so much money, filing a false claim is a victimless crime.
Regardless of the circumstances, if you are facing allegations of insurance fraud, you could likely use the advice and guidance of an attorney. The attorney may be able to help answer the charges as you pursue your best possible outcome.