Worker’s Compensation Fraud – Warning Signs and Who’s Behind It

October 17, 2024    Personal Injury Lawyers Perth
Worker’s Compensation Fraud – Warning Signs and Who’s Behind It

The Australian government has mandated organisations to look after their employees in case they sustain injuries due to work. Although employees can make claims, are they always genuine?

At times, people make false workers comp claims to reap benefits.

But how to recognise them?

To find answers to such questions, join us as we delve further.

What is workers’ compensation fraud?

Companies cover the injuries of their employees if they have sustained any during working hours or due to the type of job they do. They can make claims to receive benefits and monetary allowance to recover from the incident.

However, there are numerous types of worker’s compensation fraud. To curb this malpractice, the State Insurance Regulatory Authority of Australia carries out investigations and might even prosecute the accused if they are found guilty.

Such fraud may be conducted on behalf of the:

1. Employer

For instance, if they keep lying about compensation insurance and fail to provide it. Or if they deliberately underestimate wages or worker numbers.

It will also be considered fraud if the employer provides or asks their workers or healthcare practitioners to spread false or misleading information.

It may include claims like:

  • Overstating wages.
  • Changing the place of injury where it happened.

2. Worker

Employees can be investigated and prosecuted for fraudulent activities like:

If they claim an injury that never occurred or if they fail to returning to work after an injury without notifying. It can also happen if they provide false medical certificates or ask for exaggerated travel expenses that were not spent. Their claims may be called fraudulent if they:

  • If the injury does not match with the description of the incident that happened.
  • If the employee is delaying in reporting an event that happened without a reasonable explanation.

3. Health professional

These experts working in the workers’ compensation industry may commit fraud. For instance, they knowingly bill for consultations that did not happen. Alternatively, if they do not provide misleading medical certificates, it will also be considered fraud.

What are the Signs of Worker’s Compensation Fraud?

Workers’ compensation fraud may be happening right under your noses. Your employer or employee might make claims that may not add up. In those cases, it is crucial to dig deeper. To provide you with some examples for easy assessment, here are a few signs of workers’ compensation fraud.

1. Refusal to seek the aid of a medical professional

One of the biggest red flags is when an individual is unwilling to take the help of a doctor for their condition. Often than not, it means that there is something sketchy going on. There might not be any valid claim that the practitioner will be able to corroborate whether the injury actually happened.

Another area of suspicion maybe when the victim is not willing to turn in their medical records for further assessment. Both these scenarios indicate that the person may be involved in some fraudulent claims, and the matter must be explored further.

2. Selecting specific medical professionals

People who habitually make failed claims believe that they are smart enough and even go to the lengths of roping in professionals to help them. They may seek assistance from certain doctors or lawyers to get their payouts.

In such situations, investigators run the report on their databases to find out the history of the claimant. It provides them insights into whether the malpractice is real or if the case is genuine.

3. Reporting an injury after a long time

Another way of spotting fraudulent claims of workers’ compensation is by determining the duration the claimant waited to report the incident.

It may be especially when the victim has suffered soft tissue injury or health issues due to overexertion. In most cases, the individuals file claims within a few days, and waiting out for long may indicate otherwise, where involving a Perth Workers Comp Lawyers becomes mandatory.

4. Conflicting description

People who are committing fraud may provide conflicting descriptions of the incident. Victims who have actually faced the ordeal will provide you with a detailed report of the incident regardless of the number of times they are asked for it.

On the other hand, fraudsters will try to manipulate the event and cause incidents. Therefore, it is essential to safeguard the primary transcriptions or documents and compare them to spot discrepancies.

Bottom line

We have discussed workers’ compensation fraud and the signs to identify and understand these frauds. If you have been facing claims or allegations related to workers’ compensation in Australia, you must reach out to Personal Injury Lawyers Perth WA. With their expertise, you can come out of this ordeal easily.

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