The Growing Problem Of Travel Insurance FraudPurchasing travel insurance is highly recommended for anyone planning to get away, whether it's for a three-day quick trip or a month long excursion. Depending on the type of coverage that is bought, a travel insurance plan can protect an individual when it comes to unexpected medical care while at their holiday destination, delayed or missed flights as well as lost luggage. There are several different types of travel insurance fraud but the most common involves travelers who aren't truthful.
When a person, who has travel insurance, becomes ill while on vacation they are usually afforded benefits that will help offset the cost of medical treatments. The amount covered varies from plan to plan and also can be dependent on the type of illness. Although it may seem difficult to believe, many people conduct travel insurance fraud by feigning an illness and then working in close conjunction with a dishonest physician. Some cases of travel insurance scam actually involve an individual planning a trip solely for the purpose of pulling this type of scam. Once the insurance claim has been paid, the dishonest doctor splits the proceeds with the claimant. Arguably the most common type of travel insurance fraud involves passengers who lose their baggage. It's no secret that thousands of pieces of luggage get misplaced by airlines each year. For an honest traveler who loses their luggage they are usually disappointed and at times distraught depending on what was inside the bag. Some people who did purchase travel insurance see this as a way to get more than their bag is really worth. Not only will they generally inflate the price of the luggage itself but they are apt to also claim more for the contents. The problem with this type of travel insurance fraud is that the insurance company has virtually no way of either validating or questioning the claim. They can only take the claimant's word for it and if the coverage includes a high limit, the insurance company may be compelled to pay. Even though there is generally a waiting period between when a bag goes missing and when the claim can be processed, most dishonest travelers who file false claims don't fret. The reason is that only a very small percentage of luggage that has gone missing is ever actually returned to its owner. Many everyday travelers who file these exaggerated claims wouldn't consider themselves criminals but they are. Anyone who files a fraudulent claim with an insurance company is breaking the law. Travel insurance companies are often left with little choice but to pay the claims as they are filed. This results in increased costs to them which ultimately is passed on to every traveler in the form of higher travel insurance costs. |