Insurance fraud investigators in California play a pivotal role in the claims processing cycle due to the existence of fraud. Insurance fraud constitutes a huge drain on the resources of insurance companies. The loss runs into millions of dollars per year and the statics are forever rising as more and more people take to insurance fraud. The true extent of this vice is very hard to ascertain as there are hundreds of thousands who manage to get away with it every year. Much of the fraud that goes on in the insurance industry is perpetrated by the consumers, although some providers are caught in the act from time to time.
It has become very important for insurance providers to be able to hire investigators to look deeper into any suspicious cases before making the pay-outs. Not all cases are made equal as some of the claims pertain to straightforward cases that do not warrant any investigation. There are many indemnity products in the market to cater for a wide array of liabilities relating to various situations.
Investigative services conducted in relation to insurance claims assist not only the service provider, but also works to help those who have legitimate claims. Insurance, after all, is a pool of resources from which various contributors get the compensation that is commensurate with losses suffered as a result of the eventuation of an insured peril. It thus makes sense for the insurer to manage this pool prudently on behalf of the members.
Types of Insurance Fraud
There are many types of insurance fraud in existence and people never seem to run out of new ideas to benefit non-insured proximate causes, over-insurance, double gain, and a whole lot more. It is the understanding behind all insurance contracts that you only get insured for losses that result as a direct consequence of the insured peril. This is what is referred to as proximate cause. Insurance also operates on the doctrine of indemnity which seeks to restore you to the original position that you were in immediately before the loss. This means that you don’t stand to gain more than what is due to you according to the true value of the insured item.
People have been known to actively engineer the eventuation of perils in order to gain unduly from being insured. There are cases on record of people ramming their vehicles into trees deliberately or engineering the disappearance of their property only to claim from insurance.
The issue of personal injury is another serious issue that engages investigators for the better part of their active duty. People regularly claim to be incapacitated to one extent or the other just to gain access to the workers compensation fund. Most of the fake cases come to light when these con artists are caught by insurance fraud private investigators engaging in other productive or recreational pursuits that betray the scheme.