What is insurance fraud?

• Insurance fraud refers to the situation where deceptions are committed against an insurance company.
• It is a broad term and covers the following types of conduct:
  • where a person makes a claim for insurance when they have suffered no loss:
    • for example telling an insurance company an item has been stolen when it hasn’t;
  • where a person makes a genuine claim for insurance but exaggerates the extent of their loss:
    • for example making a claim for repairs to a motor vehicle as a result of an accident and including pre-existing scratches or damage in the claim; and
  • where a person lies on an insurance application to obtain a lower premium:
    • for example not telling the insurance company about previous car accidents on an application for motor vehicle insurance.