Abstract : Unemployment Insurance Fraud is increasing along with increasing unemployment insurance policies issued by the insurance companies. This topic has gained importance in the current time when the US economy is going through a recessionary phase after the sub-prime crisis.
Unemployment Insurance Fraud – An Overview
Unemployment Insurance Fraud has come as a severe nuisance in the insurance industry. This type of problem occurs when either the claimant or the employer provide false information to the insurance company.
Unemployment Insurance – Benefits
Unemployment insurance is beneficial to those people who have lost their jobs from unforeseen circumstances like injury or accident. In such cases, disability policy of the company or temporary job loss compensations is only partially handy. This is where these types of insurance policies come to the rescue of such a disabled person.
Unemployment Insurance Fraud – Types
Unemployment Insurance Fraud can be categorized under two broad heads, namely fraud done by the claimant and fraud done by the employer.
- Fraud done by the Claimant
A claimant is said to have done Unemployment Insurance Fraud if
- The claimant fails to furnish his/her earnings as well as reported hours correctly
- The claimant is fit for doing work but is found that he/she is unwilling as well as unavailable for work
- The claimant is not seeking work actively
- There is a theft in identity
- Fraud done by the Employer
An employer is said to have done Unemployment Insurance Fraud if
- The employer misrepresents classification of worker
- The employer reports incorrect wage to the insurance writing company
- The employer is found guilty in furnishing false information for preventing the rightful claim of an eligible claimant
- The employer fails to pay-off taxes meant for unemployment insurance
- The employer, in any way, restricts the department from conducting regular inspections.
Conclusion
Unemployment Insurance Fraud is on a rise all over the globe, particularly in USA. This fraud can either be committed from the claimant side or from the employer side for fulfilling their own vested interests.