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Insurance fraud fine

Sep 01, 2016
3 min reading time

Insurers invest a lot of time in recognizing and detecting insurance fraud. Thus, there are high costs involved. To further discourage fraud, a standard fine has now been instituted. Also, reports to the police are now more likely to be filed. When does insurance fraud occur?

According to the Insurers Association, fraud was detected in more than 8,000 claims in 2015. This was a 7% increase over 2014. In 2015, insurance fraud involved €79 million. The increase may have been caused by more claims fraud, but it can also be partly attributed to increasingly improved techniques for detecting fraud. Anyone who is now caught by insurers committing fraud is fined €532, but it does not stop there.

When is insurance fraud?

This involves intentionally harming the insurer with the intent of self-enrichment. It may involve a false claim report, but there are more acts that are considered fraud. These include reporting extra items in a burglary that were not actually stolen. Claiming old dents at an auto repair can also be considered fraud. Of course, the insurer must prove that it really is fraud and not a mistake.

What are the consequences of fraud?

If fraud is proven, the financial consequences for the wrongful claim can be significant. In addition to the fine, the claim is reported to the police and insurers can recover the costs incurred to investigate the fraud. The total cost can run into the thousands of dollars as a result.

There may also be a mistake

In the event of a claim, you do not need to be extra careful in order to avoid committing insurance fraud. In fact, there is a clear difference between a mistake and an attempted fraud. Staging a theft of your car to collect a claim payment falls under fraud. Submitting a claim that is slightly too generous because you also accidentally have other dents repaired during a claim is not fraud. This may involve a mistake. Upon discovering an error, the insurer will contact you to correct the mistake.

You should not be afraid to claim on your insurance. In fact, insurance fraud is not likely to occur. As long as you are of good will, you will not easily be accused of fraud.

Read also:

Premium consequences of a car insurance claim?

Negative claim-free years on your name. Now what?

Focwa disagrees with portrayed image of damage repairers

Claim or pay for car damage yourself?

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