Insurance fraud is something that most of us wouldn’t even dream of doing but for some people, the promise of a large payout is just too…
Insurance fraud is something that most of us wouldn’t even dream of doing but for some people, the promise of a large payout is just too tempting. Insurance fraud can range from overestimating how much an item costs, pretending to lose something, to major fraud carried out by organised groups. But how easy is it to get away with? A recent story from the US proves that dodgy insurance claims just aren’t worth it.
$2.2 Million Insurance Claim Proves to be Fraudulent
Recently, a US man intentionally crashed his multi-million dollar Bugatti into the Gulf Bay in Texas and left the engine running so it would be destroyed by the salt water. The man had purchased the car on a loan for $1 million but had insured the vehicle for a massive $2.2 million. He reported to the authorities he had accidentally swerved into the water while reaching for his phone.
It may have seemed like the perfect plan but, unfortunately for him, car enthusiasts captured the incident on a mobile phone and the footage went viral. The footage showed no avoidance of the water or braking to stop the vehicle going into the water. He also stated there was a pelican which was not visible in the video. The man pleaded guilty and faces 20 years in federal prison for fraud. As a side note, the Youtube video of the incident received more than 5 million views.
There are many stories which show the lengths people will go to so they are able to make insurance claims. A 72 year-old woman made no fewer than 49 insurance claims for slipping outside supermarkets, department stores and liquor stores. Her claims came to $500,000 and the money was used to pay for her gambling addiction. In an even more bizarre case, a husband and wife decided to fake the husband’s death in order to collect life insurance. Unfortunately, it became apparent that the claim was false after the husband turned up a few weeks later with newly dyed hair and claimed to be his wife’s new ‘boyfriend’. Both parties received jail terms.
Fraud Costing People Money
It seems that many people committing insurance fraud see their actions as a ‘victim-less crime’ – after all, it’s only the big insurance companies who lose out isn’t it? Unfortunately, the people who pay their premiums are the ones who suffer when less than honest people take out fraudulent claims as it can result in increased insurance costs. It is estimated that 10% of all general insurance claims are fraudulent and it costs the industry $2 billion every year. Of course, the majority of people are honest with their insurance claims but it’s interesting to see the lengths people can go to when they want to make some easy money.
At Elliott Insurance Brokers we pride ourselves not only on our honest clients, but also on our excellent service and knowledge. To discuss your insurance needs, contact Elliott Insurance Brokers on 1300 635 315 today and we would be more than happy to assist.
