If an insurance firm purposefully holds information from policyholders, it is known as insurance fraud. There are several reasons why frauds are committed. However, the main motive behind all frauds is to keep profits high. Based on the kind of insurance at issue and the entire situation, insurance carriers may commit different insurance fraud crimes. It is possible for policyholders and other parties to commit insurance fraud.
For instance, if you attempt to benefit from an accident that you caused by filing a claim. Any party involved in insurance fraud faces severe consequences from the fraudsters. In this article, we are going to discuss a step-by-step process, as suggested by the El Dabe Law Firm, of what you must do when an insurance company commits fraud. So, without any delay, here we go!
5 Steps to Take When the Insurance Company Commits Fraud
1. Gather Evidence
Firstly, collect all important documents. These include:
- Correspondence with the insurer
- Insurance policy
- Billing statements
If there are any suspicious activities or discrepancies involved, make a record of them.
2. Notify Authorities
It is important to meet the related authorities to report the fraud committed by the insurance company. It primarily includes:
- Your state’s insurance department
- The National Association of Insurance Commissioners (NAIC)
- Law enforcement agencies
Make sure you offer them in-depth information and evidence to support your compensation.
3. Consult Legal Counsel
If you feel the insurance company has committed fraud, you must hire a qualified attorney and seek guidance from them. They will help you understand your rights, advise about the best course of action and assess the overall strength of the case. A qualified and experienced lawyer will closely study your case to represent your interests in the legal proceedings and negotiations.
4. File a Complaint
It is important to file a formal complaint against the insurance company with the related authorities. You must follow a legal procedure and offer all necessary details and evidence of the fraud. Make sure you have a record of all responses and communications for future reference.
5. Consider Civil Action
If the insurance provider does not deal with the fraud, you can bring a civil case. Your lawyer can help you file a lawsuit and request compensation for the losses you sustained as a result of the fraud.
Final Words
After an accident, the insurance company may commit fraud to not give fair compensation. In such a situation, follow these steps against the insurance company.
