Insurance companies are active in almost any city of the united states of America, and they are known to have stringent conditions. Furthermore, insurance laws made by the government further increase the strictness of these insurance companies.
Will insurance companies pay for damage caused by you?
The insurance company is a very vast industry, and it is difficult to answer this directly. Furthermore, insurance laws are different for every state, and hence we would have to look at the laws of the state to decide if insurance companies would pay for damage caused by you or not. This question has two answers, yes and no. firstly, we should discuss why the answer is yes.
In what circumstances will they pay for self-inflicted damage?
Yes, insurance companies will pay for the damage caused by you, but they will put certain conditions due to which the insurance company will be liable to pay for the damages caused by you. In addition to this, it depends on the policies of most insurance companies. These policies differ from company to company. Moreover, we can also say that these companies have a different level of strictness and will pay you the claim after ensuring you did not cause the accident.
All insurance companies have one rule: to pay the claim to the customer if the accident cause was not intentional. Now, most of you might be confused as to why people would intentionally cause damage to their property. Allow me to explain it to have a better understanding of the whole concept behind this idea. Now, most people are not wealthy or do not have enough resources to pay for their basic needs. Despite their financial condition, the government forces them to take up insurance and pay taxes.
The insurance can be of any type, but the government of the unites states of America has said that he is liable to insure them if the person has the following essential things. These basing things are a car, a house, land, and health insurance. If they do not pay these insurance premiums for some reason, the government of the united states of America can take legal action against the individual.
Also, the government of the unites states of America also can impose fines on that individual. These fines can be very high sometimes, and people may be unable to pay them. The insurance companies provide some assistance by temporarily erasing their premium dues and accepting some amount. The remaining amount is added to the premium payments of next month along with some additional tax.
Now you see the total amount due will increase because interest is also added and hence you will have to pay more in return. People who do not have higher sources of income can not pay the premiums to the insurance companies. When they face extreme financial situations, they deliberately cause damage to the property to avail the claims. Now you see the problem arises here as insurance companies are not fools.
They know what type of accidents are caused by purpose and what kind of accidents are accidents; however, we will discuss it later when we talk about other possibilities. Let us further discuss the reasons according to which the insurance companies will provide us a loan.
Have you ever wondered if you do not cause an accident will the insurance company pay for that or not? This condition has several scenarios. One of the methods is that another object was no involved in the accident. Allow me to explain this using an example so that you may understand the concept. For instance, you are going on a free and somehow due to rain or slippery road, your car slides and crashes into the nearby tree or the wall.
The car will receive a substantial amount of damage, but that does not matter as it was not your fault. Now comes the question of how you will convince the auto insurance company that this collision was not your fault and you did not do it intentionally. You can easily prove your case if any nearby cameras captured your crash. Other than that, insurance companies have experienced psychologists, and they will take out everything from you. So you do not need to worry if they will provide you with the claim or not as long as you tell the truth and do not do it intentionally.
The other case of self-inflicting damage is when you are also not involved in the accident. Let us suppose that you decided to go to a supermarket and park your car under a shade. So you will go and look for a tree. You go shopping, and to your surprise, you see your car demolished. The tree falls on your vehicle. It might cause a lot of damage to your car, but you do not need to worry as this is a natural accident, and you won’t be held responsible for it.
Natural disasters do not have any condition, and these are the things that cause losses to these. Insurance companies run on risk, and they can’t determine that a natural calamity will occur in the next month. As a result, it will cause them losses. However, they still take out other ways to make sure that they face minimum loss. In addition to this, these insurance companies have a yearly turnover of millions, and so it does not matter if they face a loss of a couple of thousand dollars.
Furthermore, there can be other examples of self-inflicted damage. The insurance companies will also cover this damage. It involves health insurance. Health insurance is complicated as it involves multiple organizations such as hospitals and clinics. Coverage obtained through health insurance is also considered self-inflicted damage, and it is your right to apply for a claim and the health insurance company for money. But who should keep in mind that these health insurance companies have different procedures to determine if the damage caused due to health was intentional or unintentional. So if you think that you will get away with causing damage intentionally, you misunderstand the concept of health insurance companies. But if you have a genuine reason, the health insurance company will pay your claim.
Allow me to explain this using an example so that you may fully understand the whole concept. God forbid you to have a heart attack. When you have a heart attack, the hospital will make a bill at the end of your treatment. The bill will include all the expenses from ambulance charges to dropping the patient off at the hospital. Now everyone knows that a person can’t fake a heart attack. As a result, the health insurance company will pay the claims.
Some of you might be confused if the health insurance companies would cover medicines’ costs or not. That’s an excellent question, and it depends on the type of contract you have with the health insurance company. However, most health insurance companies cover the costs of medicines, and there is a reason behind it. The reason is that previously, people objected to their policies when health insurance companies did not cover medicinal costs.
The people were of the option that the medicines’ expenses were due to the health situation and hence health insurance companies should also cover it. As a result, many health insurance companies had to bring a change in their policies.
Other than that, death insurance also comes under the radar of self-inflicted damage. Although we are talking about physical damage, death is also considered moral damage to the family. Death is natural, and most health insurance companies do not even investigate if the end was intentional or unintentional. It is because no one would fake death and claim insurance.
In what circumstances will they not pay for self-inflicted damage?
It is clear that if any mischief is involved in an accident, the health insurance companies will not pay the claim to cover the damage for you. In return, they are liable to file a judicial case against you for forgery and fraud. Once this case is attached to you, it will take you a lot of time to get rid of it. Moreover, some people have to pay very high fines.
In addition to this, many people are given jail time too. Furthermore, people who commit such frauds are not offered insurance again, and they are put under scrutiny so that they may not do such an act in the future. Now let us discuss some circumstances that result in no coverage of property damage.
I will explain this using an example so that you can fully understand the concept. Let us start with the standard insurance, the auto insurance. Almost all people in the united states of America who own a vehicle have auto insurance. A car may be of any type, such as a motorbike or a car or jeep. Auto insurance premiums can vary from the price of the vehicle and the condition of a used car. Most of the time, people have to pay so many taxes that they do not have enough money to pay for health insurance premiums.
As a result, these premiums start accumulating and reach the extent that the customer cannot pay them. Now the customer has found out different ways to deliver these due premiums, and as a result, they find one solution. These people deliberately crash their car into another car or a wall and cause substantial damage to themselves and their vehicle. It gives them two benefits. The first benefit is that they receive claims for the deterioration of the property.
The second benefit is that they receive claims for the health issues faced after the accident. Moreover, some people go to the extent that they manipulate the total bill and take out more money than required. The extra money is then used to pay the due premiums. However, this used to happen 20 to 30 years ago because there were no proper rules. Now only a few people might get away with doing this, and the rest are caught. Now accidents in your car are also known as self-inflicted damage, but you will not be paid any amount. It is because the customer caused the damage, so he has to pay for it.
Now lets us look at property insurance. Property is damaged mainly through one reason, and that reason is natural. Allow me to explain this using an example so that you have a better understanding of the concept. For instance, you have a house located at a hill slide, and one-day land sliding occurs. It is evident that land sliding did not happen because of you and can apply for a claim. The company will pay for all the damages caused to the property.
However, property damage doesn’t need to be due to natural causes. Sometimes a gas leakage may cause a fire in your household, and it may be destroyed. A survey was conducted, and the people of America’s united states were asked about the common reason for fires in households. Almost 90 percent of people in America’s united states answered that it was due to a short circuit. Now it is not your fault if you burn down your house due to these reasons. In some cases, people burn down their homes deliberately.
Now I know most of you might be wondering that it is utter stupidity if you burn your house with your hand, But there is a benefit for the person. Suppose he has an old house and has many issues, plus he has no money to pay for its maintenance, so his only option is to apply for a claim and make the insurance company pay for creating a brand new house for it. So what do you think he can do?
In historical times, people used to commit such type of fraud by lighting their houses on fire using petrol or kerosene oil. Maybe they might leak the gas themselves and cause it to light up a fire. However, such tactics do not work today because after all the fire has been put out, a team from the insurance company will go for inspection. This inspection team must look for evidence that can prove that the house was damaged intentionally. If such evidence is found, the person is immediately arrested.
The same cases are reported at auto insurance companies.
Allow me to explain this using an example so that you can fully understand the concept. For instance, a person owns a rusted and old Toyota corolla and still pays insurance. For instance, if he loses the Toyota corolla or demolishes, the company will provide him with a newer car model without charging the customer extra. So, as a result, some people take their older cars and light them on fire and apply for coverage by the insurance company or send them an application for a new car. Insurance companies provide the customer with a car, but they also carry out investigations to check if they are telling the truth.
In most cases, they find the car and the proofs that ensure that the person damaged the vehicle. These types of damages were reported in many areas of the united states of America.
Sometimes frauds are committed in death and health insurance. I know some of you might be shocked, but some health and death fraud cases have appeared in the past. People do kill others close to them for acquiring death insurance. Death insurance is provided to a family member of the person that passes away.
These are not included in self-inflicted damage, but it results in very harsh consequences. If such evidence is found, the insurance claim is taken back, and the police are arrested. Health insurance frauds have also been committed in the past. People cause damage to their health deliberately to acquire health insurance money. As a result, we conclude that those who should not follow such practices result in terrible outcomes.