What types of insurance fraud are there?

Types of insurance fraud

As mentioned, there are different types of insurance fraud. You can commit insurance fraud before taking out an insurance policy. For example, giving incorrect information to the insurer when applying for insurance is considered fraud. It is also possible to commit insurance fraud after the insurance has been taken out. A number of examples are mentioned here:

Lying or concealing when applying for insurance
Fraud is common when applying for insurance. To increase the chances of acceptance, a person may enter incorrect information. These underwriting questions are always asked by the insurer before an application. Acceptance questions include:

• Have you ever been disqualified from driving?
• Have any of your insurance policies been cancelled or refused by another insurer in the past?
• Have you come into contact with the police or justice system as a suspect in the past eight years?

If one of these underwriting questions is correct for your situation, you must always answer 'Yes'. If you do not answer truthfully and you lie, this is insurance fraud.

Intentionally causing damage

It is also often the case that someone deliberately causes damage in order to receive payment, for example by faking a collision or burglary or by deliberately driving into something. It is then up to the insurer to establish that there has been fraud. They often do this by setting up an investigation, whereby an expert examines the case. People often forget a few things when committing fraud, such as smashing a window. This happens during a burglary from the outside, but is often done from the inside. In this way, fraud can be quickly established.

Claiming more damage than was actually suffered

The most common form of insurance fraud is claiming for extra things that should not have been claimed at all. Examples of this are an extra phone after a burglary, while this has not been stolen or a few old dents in the car after an accident, which have been there for a long time. The actual damage is extended and exaggerated, hoping for a higher compensation from the insurer.

Pretending to suffer damage or distorting the facts

Insurers often see people pretending there is damage when there is not. For example, a laptop that is reported stolen, while they themselves have lost it. Also, stories are changed from rejected claims, so that it falls within the coverage. The facts are changed in such a way that the insurer will have to pay out an amount.