Insurance fraud

• Author: Elena Popa
• Position: Junior Lecturer. 'Dunarea de Jos' University, Galati
• Pages: 176-184

176

INSURANCE FRAUD

Junior Lecturer Elena Popa

„Dun<rea de Jos” University, GalaYi

neculaelena2003@yahoo.com

Abstract:

The present article aims at proving that the Insurance fraud has a significant

number of facts antisocial of economic and financial nature that have been little

discussed although they the cause of serious damages to the insurance companies.

Insurance fraud is a phenomenon extremely harmful that is to be met in the

Romanian insurance companies as well as in other countries in the European

Community, Canada or USA. The real problem with this issue is that it does not get

enough attention, being a very serious one, although not as frequent as other forms

of economic and financial criminal acts.

In the fight against insurance fraud, the insurance companies have to

conjugate their efforts into detection and neutralization of policyholders of bad

faith in their attempt to frame or to produce, intentionally, insured events, as well

as into actions of removing the causes generating fraud, more precisely into

drafting and adoption of control methodologies specific to each insurance

company, creating new departments specialized in combating fraud in the

insurance.

Keywords: insurance, fraud, injury, precedent

The word comes from the Latin fraus-fraudis, being seen as the act of bad

faith committed to obtain a profit. In the legislation in force in the insurance, fraud

is not defined, and the specific facts of insurance that constitute the crime of fraud

are not described.

With the U.S. and the European Union this activity is regulated nationally

by specific laws and structures specialized in investigations and control, in

Romania, currently, there is no legal regulation on the concept of insurance fraud, a

definition of facts constituting crimes in this area, no database on people who

intentionally produce damage insurance, nor bodies and institutions specialized in

combating this phenomenon.

A large proportion of the payment of compensation for the risks insured is

represented by events produced intentionally or by staging, known among general

practice insurers as the insurance fraud.

Insurance fraud encompasses all crimes committed in a period in the

security system on the national territory. The offense is "the fact that is assumed to

be a social peril guilty as provided for criminal law”. It also implies committing

any of the facts that the law punishes as crime consumed or as an attempt and

participation in the commission as author, instigator or accomplice.