Why Should You Not Lie To Your Insurer?
Published On Aug 24, 2022 10:00 AM By InsuranceDekho
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Consider falsifying your healthcare provider. Maybe you're considering withholding certain details about your house or vehicle. Don’t. You could really get into more difficulty than you realize. It's always preferable to be forward and truthful.
Everyone has a justification for falsifying to their healthcare provider. Typically, it's done to make money of some kind. They would like to pay less for coverage and receive a larger payout for a claim although they are ineligible. Overstating claims or providing misleading data on your application are also examples of dishonesty.
Why Do Individuals Tell Lies To Their Provider?
For a number of causes, individuals lie to insurance companies. People typically lie to buy insurance for one of the 3 reasons mentioned:
- To make a claim if they do not qualify: Individuals are considering high-risk drivers for vehicle insurance. They mislead because they are required to pay extra or risk being rejected due to prior instances.
- In order to save some money: Insurance costs may be high. People withhold details or falsify them in order to save some money.
- To receive extra bucks from the claim: Individuals make false claims or overstate losses. For instance, someone got their fridge stolen or anything, so they would make the claim that they had a bigger fridge and maybe something which they never even possessed.
Why You Should Not Lie To Your Insurance Company?
If a friend or someone else suggests that you give inaccurate details throughout the registration procedure you should definitely avoid it. The 3 main reasons that you should not be doing something are listed below.
1. Following The Covered Person's Death, The Insurance Has No Perks: If you provide your provider with misleading paperwork or claims at the outset of your insurance coverage. Then, be prepared for the company to provide no benefits. You are mistaken if you believe that the insurance would not be able to identify your fabricated claims.
Even if you make your premium payments regularly and truthfully, you could not get the advantages when your policy is about to mature. Therefore your petition for claim denial will be filed right away by the insurance. Receiving an insurance refusal of coverage after genuinely paying for the insurance premium is the saddest scenario you can think of. Avoid the opportunity at all costs to lie to the insurance.
2. Criminal Punishment: You did hear it correctly. If it is discovered that you lied when purchasing an insurance policy, the provider may take legal action against you. In severe circumstances, it might result in a heavy punishment and time in prison. Being honest with your insurance is therefore the greatest approach to avoid going to prison or incurring a fine.
If you mislead the insurance provider, there will be no chance that you will get any better or additional perks. So, the best approach to prevent any problems in conclusion is to be truthful right away. Criminal accusations also carry complete dishonor. As a result, you must be honest with your insurance.
3. No Possibility Of Being Covered By Other Insurance Providers: If you are discovered to have lied to your insurance provider, they may file a MIB (Medical Information Bureau) against you. Any other healthcare provider will be prohibited from offering you coverage if you have a MIB.
The reason is that a MIB instantaneously generates all the information regarding your medical issues. As a result, if your provider files a MIB against you after discovering that you lied to them, you won't be eligible for any compensation from any other insurance companies.
The ideal behavior to remember while purchasing insurance coverage is being honest. It is advisable to prevent misleading your provider when purchasing a policy of health insurance in order to avoid humiliation, imprisonment, and being barred from receiving any benefit.
Also Read:Importance of Getting Health Insurance That Covers Home Treatment