What You Need To Know About Travel Insurance Fraud
Travel insurance fraud – it is a serious matter that does not receive a great deal of attention. There are some misconceptions about travel insurance fraud that you might not know about. The fact is that travel insurance fraud leads to a number of different problems that have a serious effect. These are a few things that I believe that you need to know about travel insurance fraud.
Find out the top 14 reasons travel insurance claims are denied
1. It is a big deal
Most people assume that travel insurance fraud is not really something too serious. Perhaps it has to do with the fact that going on vacation is supposed to be a break for the norm, but many people who file a fraudulent travel insurance claim have never tried to defraud any other instance before.
Those people who file a claim in attempt to commit travel insurance fraud do not realise that this might result in them having a criminal record of their action. While a prison sentence would be the worst-case scenario, far more probable is the idea that a conviction might make it almost impossible to take out any sort of insurance policy in the future. Imagine not being able to have household or car insurance because you were trying to get some money for a non-existed luxury bag. Hardly seems worth it.
2. Exaggeration is fraud
Most travel insurance fraud claims are not people just outright making stuff up - it is often exaggeration of something that they have actually lost. Most people lose something during their travels, but they instantly add a bit of value to something that they lost. They might have lost a Coach bag, but suddenly they will report that they have lost a Louis Vuitton. Their watch might have been broken on a boat trip, but what was once a Calvin Klein watch suddenly became a Rolex. The most common fraudulent claims include fictitious medical treatment, false claims for lost baggage, and these exaggerated losses.
3. Regret later on is not good enough
Some people file an official request in an attempt to commit travel insurance fraud. They might later regret the decision, but they might still be liable to prosecution for fraud. This is why it is important to consider travel insurance fraud beforehand. Even if you decide that you have regrets later, filing a false claim might still come back to haunt you.
4. It raises everyone’s premium
Some people are able to justify travel insurance fraud by saying that they have never declared anything before. The truth is that fraudulent travel insurance claims do come at a cost – they raise the insurance premium for everyone. These fraudulent claims are not a “victimless crime”; the money is going to have to come from somewhere. In short, it means that people who are not committing travel insurance fraud are actively paying more for those who are.
What things can you do that will void your travel insurance?
5. Mistakes may count as fraud
If you lose something/have it stolen/have it break during your vacation, it may be covered by your travel insurance policy and your household policy. However, you might be committing fraud if you try to claim the full value of your loss twice on both accounts. If you do not have full coverage by one policy, you are allowed to try to claim the cost of a loss from one policy or the other (in part). Even in those cases, asking for professional advice is always the better choice.
6. Thinking about it clearly
Even though claiming on your travel insurance can be tempting, especially if you feel that you are only paying without ever claiming, it is always a better idea to invest in good, cheap travel insurance. That way, you are less likely to have the desire to make up your payments with a false claim and you are able to avoid a litany of problems associated with travel insurance fraud.
Gail Palethorpe, a self proclaimed Australian gypsy, is a freelance writer, photographer and eternal traveller. Check out her website Gail Palethorpe Photography and her Shutterstock profile.
