Insurance Fraud Hotline Launch

A new insurance fraud hotline service will be officially launched tomorrow to help Australians report suspected insurance fraud. This service designed to give members of the public the chance to take action against insurance fraud.

Insurance fraud comes at a huge cost to the community - study of Insurance Council of Australia showed that honest Australian policyholders contributing about $400 per family per year to compensate for dishonest claims, or about $100 per compulsory third party premium.

Life Insurance Frauds

A typical example of income protection insurance fraud might be a person claiming a monthly benefit - while working another job on the quiet. More extreme examples of life insurance fraud include elaborately faking deaths and disappearances for the fraudster and any accomplices to secure the payout.

Key areas within the life insurance sector to which this service will cater:

  • Doctors participating in disability fraud
  • Falsifying motor accident treatments when no real injuries exist
  • Payouts for dishonestly claiming Total and Permanent Disablement benefits
  • False income protection claims, particularly in relation to injury-related claims
  • False death claims, including identity fraud

Members of the public can call the hotline number 1800 487 884 or visit the website and report information about any kind of insurance fraud. The service can also allow people to anonymously and securely upload pictures, videos or scanned documents.

Authorised representatives from insurance companies will have free access to the tip-off information for the purposes of their own evaluation and potential investigation.

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Published on September 9-th, 2010 in Life Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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