Origin & Form Of Insurance Swindling And Countermeasures

The development of insurance business is faced with a drastic increase in the number of law cases involving insurance swindling. Insurance swindling disturbs the normalcy of the insurance market, greatly violates the legal rights and interests of the insurance company and the policy-holder, and hinders the healthy development of the insurance business in our country. So research into insurance swindling and effective legislative countermeasures is of great importancc in correctly identifying the insurance swindling acts, reinforcing safety consciousness, avoiding occurrence of any swindling act and maintaining the normalcy of the insurance order. This paper summarizes the different forms of insurance swindling from the angles of the policy-holder and the insurance company, then analyzes its origin on the levels of the society, the economy and the insurance company itself, and finally offers possible suggestions about the countermeasures against insurance swindling in terms of information asymmetricality, maximum honesty principle, legislation, etc. Minimum investment for maximum interest is the internal origin of insurance swindling; the policy-holder, the insurant, the beneficiary or the clerk of the insurance company take advantages of the bugs in insurance contracts and insurance company management to aim at illegal income by means of inventing insurance object, producing false notice about the risk faced by the insurance object, repeating buying the same insurance item, or buying insurance services via insurance object without insurance interest. Inventing insurance accidents, making up reasons for insurance, exaggerating losses, and causing insurance accidents on purpose are the major forms of insurance swindling. The change of social morality is the root of insurance swindling; tolerance and incitement as well as the weakness of the legislative offices in fighting the insurance swindling acts are the social reasons for the spreading and repetition of this phenomenon. The uncertainty, changeability and moveability of insurance value, the personal elements in loss weighing of the insurance object, and the interest conflicts between the policy-holder and the insurant are the economical reasons for these swindling acts.Fighting against insurance swindling is the duty of the insurance company and the whole society. We should find a solution to the problem of information asymmetricality in insurance market, put more weight on the importance of the honest principle in insurance law, borrow from foreign insurance experience, and make use of proper countermeasures to fight against the swindling acts in insurance market.