4 Insurance Scams And One Hot Chick

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Life, Liberty And Some Money Losing Insurance Scams

Insurance scams are rife. From dogs with pyromaniac tendencies to dodgy excuses like, “I don’t know why I left the gas ring on and a candle burning in the kitchen”. You name it and it’s been tried.

Given the state of the global economy it’s not surprising that some people are out to make some extra money. But what depths will people stoop to?

Mr M Mouse Is Handing Out Receipts

It’s the oldest trick in the book: you’ve lost your receipt or you bought something second hand. Cue a flimsy insurance claim but, whatever you do, don’t ask your mates to make a fake receipt or you might get caught out like Mr H.

Following a genuine burglary of his home, H made a claim under his home insurance policy which was settled. A few months later his van was broken into and a number of personal possessions were stolen. Unfortunately he didn’t have receipts for all of his original purchases and asked a friend to cook one up.

During the course of the investigation, his insurers discovered the fraudulent claim.

Result? The insurance company refused to pay out for both alleged losses. They also asked for the money back from his original claim.

Darth Vader Foils Fraudster

In 2002, the home of Mr P was burgled whilst he was enjoying a night out with friends. He duly claimed for a number of items including a selection of Star Wars DVD’s. To you and I, DVD’s are small beer but not the insurance assessors. Especially when the said movies weren’t due to be released to DVD for another 3 months!

Result? You guessed it: His entire claim was forfeited on the grounds of fraud.

Home Office Forensics Swoop On Decorator

Loss assessors have moved on from the dark days of simply scouring claims forms for irregularities as Mr M discovered in 2007. Whilst he was painting a window frame, the claimant stated that a visitor came through the door knocking over the paint pot. The resulting spillage left his sofa and carpet covered in a thick layer of paint. An open and shut case?

No. The assessors called in forensic investigators who reported that the paint splashes were inconsistent with the alleged spillage.

Result? The policy was cancelled and the insurance company declined to pay out.

Burn More Than Just Your Fingers

A U.S lawyer decided to take out insurance for his rare collection of cigars to prevent them from accidents involving fire (can you see what’s coming?). Once insured, the lawyer smoked the lot. Initially, the insurance company refused to pay out but were sued by the lawyer who won his case. Case closed? Not quite.

Following the initial case, the insurance company then sued for the claimant for arson.

Result? 24 months in clink!

Grandma We Love(d) You

For some home and business owners, arson seems like the logical retreat when you’re swimming in debt. The consequences can be tragic. Over the years a number of cases had ended with hapless victims being consumed in a raging inferno.

After running into severe financial difficulties, Lewis Drayton of Ohio, America decided to burn down the family home. Unfortunately, his elderly grandmother was still inside when the flames tore through the house. She later died of third degree burns.

Initially, Drayton pointed the finger of blame at his uncle but he should have done his homework. At the time of the fire his uncle was already in prison.

Result? Goodbye liberty, hello long stay in prison (all for a measly $8,000)

Were the dodgey claims worth it? In these 5 cases, probably not. You have been warned!

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