When I first heard the phrase funny insurance claims, I assumed there was a punch line following. It is actually another term for fradulent insurance claims, however, and it is not a laughing matter. It might seem at first glance like a Robin Hood story where the deserving are getting what they are owed from the rich insurance company. This is not the reality of insurance fraud and it is actually harmful, when it happens, to all insurance owners. Here are several drawbacks to funny insurance claims.
First, fraudulent insurance claims cause a rise in the cost of services for all other users that the insurance company provides for. At the end of the day, an insurance company needs to both cover its losses and make a profit. In a system where people do not cheat, everyone contributes a little bit of money so that they can potentially use a lot if anything ever happens to them. In a system where individuals cheat, everyone has to contribute more money in order to cover the costs of funny insurance claims, which collectively cost the insurance industry millions of dollars every year.
Not only that, but the submission of fake elephant insurance claims makes life more difficult for everyone who comes after you if the insurance company finds out. They will go over future claims with an even finer toothed comb, causing potential delays in payments and medical treatments.
Second, if you get caught pushing funny insurance claims, it is not just your life that is impacted, but that of your family as well. Money that you intended to use to provide for your spouse, raise your children or send them to college can be taken away from you in order to cover the cost of false insurance claims. And if you think you can get away with it, consider that half of all the private investigators working in the country are employed by institutions like banks and insurance companies. They are serious about double checking the veracity of your claims.
Third, offenses like funny insurance claims can be punished by fines or jail. It is a fraud just like any other type. Even if you think you sort of deserve the money you are filing for, if it is a false claim, just do not do it. It is not worth a court appearance or a change to your permanent record.