Saturday, December 22, 2007

Carnap me scheme

One of the common modus operandi in insurance fraud is the "carnap-me" scheme.
This is a situation where a car owner insures his vehicle agasint theft or carnapping, then later, have the vehicle carnapped.
The vehicle owner will then report to the insurance company and claim for the insurance proceeds.
In this fradulent scheme, the vehicle owner earns money because of the carnapping.
The "carnapped" vehicle will either be re-sold, after making changes, or it will be chopped to pieces and sold by piece.
Either way the vehilce owner gets income from it.
Aside from this, the vehicle owner gets income from the insurance proceeds due to his fraudulent claim.
For this reason, insurance companies have expert and experienced evaluators to investigate on thier own, whether an insurance claim for theft is a carnap-me scheme.
If the insurance company evaluators discover badges of fraud, or indicators that a claim is a carnap-me scheme, the claim will be denied.
Goin to basics, Insurance is a concept that seeks to indemnify a person for loss arising from an unknown peril.
In carnap-me situations, the insurance is not payable or indemnifiable because the loss did not arise from an unknown peril, but from a previously known, well-planned peril.
As it has been said, insurance is a means to indemniify, not to enrich one person at the expense of another.

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