Travelers Insurance Scam
| It is rather unfortunately that fraud exists practically everywhere. |
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However, one area of our lives where fraud is quite rampant is the insurance industry. It is because of insurance fraud that insurance costs are gradually rising.
With more and more people lodging false claims, the ordinary person is expected to shell out more money in the form of higher premiums to pay for these claims.
Even the travel industry is fraught with travelers’ insurance scams. Usually we take out a travel insurance to cover ourselves during a vacation. Travel insurance coverage is dependent on the terms and conditions of the policy but usually it covers lost or broken luggage, thefts during a vacation, medical needs or lost personal items.
One of the most common travelers’ insurance scams is feigning illness to collect insurance money. We all know that travel insurance covers any medical treatments during a vacation. The amount covered varies from one plan to another and it is also based on the type of illness. In this type of scam, the person fakes an illness and then works along with a dishonest doctor to collect the money. For some, this scam is a sort of business where they actually plan a holiday just to pull off the scam. Once the insurance company pays the money, the proceeds are divided between the doctor and the claimant.
However, the most popular travelers’ insurance scam involves loss of baggage. Thousands of luggage pieces are misplaced by airlines each year. People buy travel insurance to cover any such thing because they will be forced to buy new clothes, personal items and other accessories until their original luggage reaches them. However, when it comes to this type of insurance fraud, the company has no way of validating the claim if the claimant says that the misplaced luggage was valuable. The insurance company can only pay the claim. The saddest part is that even normal travelers who have never done anything wrong or criminal in their lives end up filing false claims just to make more money.
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