Insurance is a Fraudulent Activity Compared with the Activities of Bank

1. Presentation On
Principles of Insurance
Presented To:
Mrs. Chandra Das
Assistant Professor
Faculty of Business Administration
Presented By:
Name: Saimun Hossain
Id No: 1587
Batch : 42nd
Semester: 7th
University Of Science & Technology Chittagong (USTC)

2. Topic: Insurance is a Fraudulent Activity Compared with the Activities of
Bank

3. Insurance Fraud
• Insurance fraud is an illegal act on the part of either the buyer or seller of
an insurance contract. Insurance fraud from the issuer includes selling
policies from non-existent companies, failing to submit premiums, and
churning policies to create more commissions. Buyer fraud, meanwhile,
can consist of exaggerated claims, falsified medical history, post-dated
policies, viatical fraud, faked death or kidnapping, and murder

4. How Insurance Fraud Works
• Insurance fraud is an attempt to exploit an insurance contract. Insurance is
meant to protect against risks, not serve as a vehicle to enrich the insured.
• Insurance fraud by the policy issuer does occur, although the majority of
cases have to do with the policyholder attempting to receive more money
by exaggerating a claim.

5. Types of Insurance Fraud Schemes
• Sellers
1. Premium diversion
2. Fee churning
3. Asset diversion
• Buyers
• Attempts to illegally reap funds from insurance policies by buyers can take on a variety of forms and
methods. Insurance fraud with automobiles, for instance, may include disposing of a vehicle and then
claiming it was stolen in order to receive a settlement payment or a replacement vehicle.
• The original vehicle could be secretly sold to a third party, abandoned in a remote location,
intentionally destroyed by fire, or pushed into a river or lake.