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There are certain circumstances where holiday insurance cancellation cover will pay out; these must be valid “unforeseen” circumstances that prevent you from taking the trip.

Typically, specific “perils” include illness, injury and being called for jury service - all of which are “evidence-based”.

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Common frauds include "padding," or inflating actual claims; misrepresenting facts on an insurance application; submitting claims for injuries or damage that never occurred, services never rendered or equipment never delivered; and "staging" accidents.

I would often say things like “Man, you’re getting ripped off on insurance.” Or, “This has got to be a scam – you are paying THIS much for something you never use?!

” These thoughts all came before I had the slightest clue what I was talking about. I got to witness first-hand how extremely important insurance is.

Insurance industry estimates generally put fraud at about 10 percent of the property/casualty insurance industry’s incurred losses and loss adjustment expenses each year, although the figure can fluctuate based on line of business, economic conditions and other factors..

Using this measure, over the five-year period from 2011 to 2015, property/casualty fraud amounted to about billion each year. Department of Health and Human Services’ Centers for Medicare and Medicaid Services’ data for 2010, healthcare fraud amounted to between billion and 9 billion.