By Dan 
Elephant insurance claims are generally known by their more explanatory names, which are fraudulent insurance claims or false insurance claims. These kinds of claims cost insurance companies and others millions of dollars per year in extra work, not to mention the time that is lost investigating these elephant insurance claims. This is why these claims should be avoided at all costs by consumers, even those who feel that they will get away with any kind of funny insurance claims they file.
These elephant insurance claims hurt more than insurance companies, though they are the ones that are mostly impacted by these claims. When a false claim is filed, an employee in the claims department of any insurance company will have to engage in a formal investigation to ensure this claim is valid. This normally is done with all claims to ensure their validity, but when something fishy or funny shows up a claims investigator has to literally drop everything and focus on that claim to make sure it does not go any further in the claims process.
This impacts not only the employee but also the company as a whole, which now has to potentially raise its rates or cut its costs in other ways to help compensate for these elephant insurance claims. Now that the company has lost some of its revenue due to these elephant insurance claims, it must compensate in other ways. And sometimes, this causes rates to go up, even for the insurance holders who have done nothing wrong. So filing these claims impacts everyone, from the company accepting and investigating the claim to the people who are insured by that same company, including the person filing the false claim.
When all is said and done, everyone stands to lose a whole lot when these elephant insurance claims are filed. People sometimes feel that they have a given right to file any kind of claim they want, even if that claim is entirely false. But it is much more feasible and has a happier ending when claims are filed the right way and using the most appropriate channels. People may feel like they are not going to get as much out of things if they file proper claims instead of elephant insurance claims, but they will most likely end up in better situations when everything has passed. And they will not get into trouble either by getting caught filing a false claim.