The workers’ compensation insurance system is a no-fault scheme for reimbursing workers with medical expenses and wage losses as a result of on-the-job injuries. This is calculated to come to the aid of people who have been injured on the job in a way acceptable in the eyes of law. Most states call for full payment of medical and rehabilitation expenditure for injured employees and up to two-thirds of wage loss payback in the period of their being incapable of working. What all these mean is that workers’ compensation is an alluring target for insurance criminals, on the prowl to hoax actuaries for in a bid for illicit money-making.
It must be admitted that, the huge mass of workers’ compensation claims are honest. Still, one cannot deny that billions of dollars of false claims are produced each year before insurers from patients and unscrupulous doctors who either blow up the degree of injuries or just engineer them at the very beginning. Those actually paying the price for this offense are the honest masses. The annual payment of American businesses cross billions of dollars in higher insurance premiums and other expenditure such as production holdups, restrictive costs and equipment substitutions on account of workers’ compensation hoax. These costs reflect in higher prices for goods and services.
Mastered by some fraudulent doctors, lawyers, employees (claimants) and even employers themselves, deceit in workers’ compensation has manifold forms. Many doubtful workers’ recompense claims are for soft tissue injuries, such as strained
muscles, headaches, whiplash and snowballing constant concern. These types of claims being exceedingly tricky to refute, they are eye-candies for those intending to swindle the workers’ compensation insurance mechanism.