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Disability Insurance Workers Compensation Abuse Fraud

 

Disability insurance workers compensation abuse fraud is any practice that uses the disability insurance and workers compensation system in a way that is contrary to the intended purpose of the law. This fraud often occurs when someone knowingly and with intent to deceive, presents or causes to be presented, any written statement that is false and misleading to obtain some benefit or to cause some benefit that is due to be denied.

Disability insurance workers compensation abuse fraud comes in many different cases, the most notorious of which is the fake job related injury that is only discovered when the worker is caught doing other work while collecting disability insurance or worker’s compensation benefits. Abuse and fraud is not only carried out by employers but employers as well. Disability insurance workers compensation abuse fraud made by employers happens when the employer misreports the payroll or classifies workers in less risky categories in order to cut corners on premium dollars.

In order to fight disability insurance workers compensation abuse fraud employers have to be carefully verity references and background information regarding their employees. It is also important that they publicize their workers compensation policy to all new and current employees and provide them with updates at least once each year. Additionally, be aware of disability insurance and workers compensation fraud indicators when a claim is made. Most importantly, pay attention to your employee’s complaints and concerns about their working conditions. Keep in mind that the strongest indicator of fraud is a chronically dissatisfied work force.

The bottom line is disability insurance and workers compensation abuse and fraud cases costs both the employers and employees. Hence, employers and employees alike have to be aware of the cause and effect of fraud and abuse so they could reduce these instances in the workplace and they could do the appropriate action before hand.

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