NCJ Number
121467
Journal
Security Management Volume: 33 Issue: 9 Dated: (September 1989) Pages: 58-61
Date Published
1989
Length
4 pages
Annotation
The FMC Corporation uses its security division to determine whether personal injury and disability claims against the company are valid.
Abstract
FMC is self-insured, meaning the cost of injury and disability claims is borne by the company. In many cases, claimants initially have justified claims of temporary total disability but continue to draw benefits long after healing would permit return to work. In such cases, surveillance of the claimant's activities will document his/her physical condition. Although the investigation of workers' compensation claims are traditionally not part of the security department's duties, fraudulent claims can cost a self-insured company hundreds of thousands of dollars in payments. It would not be surprising to find dozens of claimants collecting thousands of dollars. Such cost outlays justify the cost of surveillance. There need not be hard evidence that claimants are malingering. If a claimant has no warning that the company is suspicious of the claim, surveillance is more likely to yield results. Long-range video surveillance of claimants should be conducted by agencies specialized in such work. Although the costs of contracting with such agencies is high, it can be cost effective if sufficient numbers of fraudulent claims are detected.