What can be the consequences of insurance fraud with the car?

#2 Termination of your car insurance

Insurance fraud is taken very seriously by insurers. They do not like people who commit fraud as policyholders, which is why insurance policies are almost always terminated in cases of insurance fraud. If you have several insurance policies with the same insurer, the insurance company will also consider whether these policies will also be terminated. You have damaged the trust of the insurer and that is the reason for the termination of the insurances. The insurer can no longer count on you and does not trust you to keep to the agreements and therefore almost always chooses to terminate all current insurances.

#3 Registration of personal data in insurer's fraud register

When your insurer terminates the car insurance, it also stores your data in the internal register of the insurance company. Sometimes people talk about a 'black list', but this does not exist. The insurer does register when and why they terminate an insurance policy. The purpose of this is to warn the organisation and to keep it alert to new requests from you, for example. These internal registrations cannot be viewed by other insurers, but they prevent you from taking out insurance again with the insurer where you committed fraud.

#4 Registration with CIS Foundation

Stichting CIS stands for Stichting Centraal Informatie Systeem. In their database, they store all kinds of important data that can be of great value to insurers. If it turns out that you have committed insurance fraud, you will receive a CIS registration. You will then be listed in the database, with the reason for registration and your personal details. The data can be viewed and requested by other insurers and agents. The purpose of this database is to limit the risks for insurers with new applications and to prevent fraud as much as possible.

A CIS registration due to fraud makes it very difficult to take out a new car insurance. An insurer to whom you submit an application will always check whether you are registered in the CIS database before accepting an application. If the insurer sees that you are registered for fraud, there is a very good chance that they will reject your application. In that case you can actually only turn to the insurance company De Vereende. De Vereende is specialised in insuring special cases. Because of the broad acceptance policy you can, even with a CIS registration, still take out a car insurance.

#5 Reporting to the Insurance Crime Control Centre (CBV)

To support insurers in tackling fraud and other forms of insurance crime, there is a special department within the Dutch Association of Insurers: the Centre for Combating Insurance Crime (CBV). Did you know that insurance fraud can also have a major impact on your future career? If you apply for a position within the insurance sector or at a financial institution, there is a good chance that the company will check you out with the CBV. When they see that you are registered for insurance fraud, they may reject your application; it does not exactly make a good impression.

#6 Financial implications

From a financial point of view, insurance fraud also has some consequences for you as a fraudster. Firstly, you will have to pay a standard fine of €532. Secondly, the investigation costs will also be recovered from you and you will have to pay these. These investigation costs arise from the investigation which insurers have carried out when they suspect that fraud is taking place. They have to be certain that fraud has actually taken place and they also have to be able to prove it. If an external investigation bureau or expert has to be hired, the costs of the investigation can mount up considerably. Finally, taking out a new car insurance will be a lot more expensive than usual, mostly due to a higher premium. If you take out insurance with De Vereende, you have to pay the premium for the first three months in advance and you also pay a deposit. If you are late in paying the premium, De Vereende can use this deposit to settle outstanding premiums.

#7 Reporting to the police

Finally, the most serious consequence is to be reported to the police by the insurer. However, this does not happen very often in practice. It is of course a radical step to take and is usually only done when it comes to very large fraud amounts or when there is a question of organised crime.