Apart from the insurance companies and their employees the people who buy insurance policies also indulge in fraudulent practices. The fraud that takes place in the insurance business on part of the policy holders involves the following:
Faking death to claim the insurance money. The swindlers may disappear for a few years and then reappear again and claim to have suffered from a memory loss.
Hiding their existing diseases before the insurance company
Fake age proofs are presented before the company to become eligible for the insurance policy.
Forging of the medical bills is a common fraud that takes place in the health insurance sector.
Traveling abroad for surgery, stealthily.
Having a damaged vehicle insured without informing the insurance companies
Not informing the insurance company about existing ailments.
Exaggerated or bogus claims
In some cases there is collusion between the insurance company employees and the policy holders to claim excessive insurance benefits. They resort to providing false documents and manipulating facts.
The statistics portray a gloomy picture about the insurance industry with thousands of fraud cases being reported every year by the insurance companies. This adds another feather in the cap of the insurance contracts. Besides the factors of Riba, gambling, gharar, jahaalah and some others which we have discussed earlier, another factor which make insurance un-Islamic and totally unreliable is the widespread fraud in this industry.
Keep Me In Your Prayers.