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.
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:
Members of the public can call the hotline number 1800 487 884 or visit the website www.insurancefraudhotline.com.au 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.