The extent of Fraud in workers compensation is: a) Rampant; b) Not really as big an issue as everyone thinks. Answer: Who knows? This is one of the key issues in the area of fraud management in workers compensation in Australia: there is no consensus on the extent and impact of fraud in the workers compensation industry. There are numerous industry estimates but the bottom line is that it appears to be a drain on the system. But how much of a drain?
Fraud management in workers compensation
Here is quite a good and insightful article in all things workers compensation fraud, sourced by our star contributor Trinny.
…there has been an increased focus on the issue of ‘commercial stalking’ which refers to the overuse (or unnecessary use) of investigation by insurers…
…it is not in the interests of insurers to become too aggressive in their approach to fraud management, especially in the area of premium fraud. Prosecuting or fining customers is just not good business! [WTF!]
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