What is insurance fraud?
Insurance fraud is the deliberate deception of an insurer, whereby the fraudster aims to gain an undue advantage for himself. There are various degrees of insurance fraud. Not all people who commit insurance fraud see themselves as fraudsters. After all, what difference does it make if you give the insurer an extra mobile phone after the house has been broken into? Or if you also claim a few old dents when repairing a car? Yet these are all forms of insurance fraud.
Insurers take insurance fraud very seriously. They invest a lot of time in recognising and detecting it. Are you caught committing insurance fraud? Then this can have serious consequences. You will have to pay a standard fine and you may have to report it to the police. In addition, it will be more difficult to take out insurance in the future.
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How does insurance fraud work?
There are different types of insurance fraud. Here are some examples:
- Insurance fraud when applying for insurance
When applying for insurance, someone provides incorrect information. An insurer always asks a number of acceptance questions before accepting an insurance application. For example, they ask whether your insurance has ever been cancelled or refused by an insurer, whether you have ever been disqualified from driving and whether you have a criminal record. If so, you must always answer these questions with 'Yes'. If you do not answer the questions truthfully, you are committing insurance fraud.
- Claiming more damage than was actually suffered
When reporting damage, someone provides incorrect facts. After a burglary, for example, they report more items than were actually stolen. They exaggerate the actual damage or the number of items stolen so that they get more compensation from their insurer.
- Pretending to suffer damage or distorting facts
For example, by reporting a lost laptop as stolen. Also, the facts of the damage are often twisted so that it falls within the insurance coverage.
- Intentionally causing damage
Insurers regularly find that someone stages a collision or deliberately crashes into something. It is then up to the insurers to demonstrate that this really is fraud. A specialist always comes along to look at the case. They will quickly find out if, for example, you have smashed a window in your house to stage a burglary. Especially if you smash the window from the inside, as often happens.
Examples of insurance fraud
According to the Dutch Association of Insurers, car insurance, home contents insurance and liability insurance are the areas most affected by fraud. Insurers are faced with thousands of false claims or insurance applications with incorrect information every year. We have already given a number of examples of insurance fraud, but there are countless more to come. For example, people lie about the contents of their suitcase if they lose it on holiday. Or they might give up a very expensive camera that they perhaps didn't have with them at all. People also regularly take photos of damage from the Internet in order to file a false claim.
Reporting insurance fraud
Do you suspect insurance fraud? Then you can report this (also anonymously) to the Insurance Crime Control Centre (CBV) of the Dutch Association of Insurers. The CBV helps insurers to combat insurance crime. You can report at [email protected] or call 070-333 85 00.
Insurance fraud penalty
However, certain penalties are attached to committing insurance fraud. For example, since 2016, SODA has been demanding a standard fine of €532. SODA stands for Service Organisation Direct Liability. In addition, insurers can recover the costs incurred for investigating the fraud from the fraudster. In some cases, the fraud will also be reported to the police. Insurers do this particularly when the amount of fraud is very high, or in cases of organised crime.
Examples of insurance fraud
According to the Dutch Association of Insurers, car insurance, home contents insurance and liability insurance are the areas most affected by fraud. Insurers are faced with thousands of false claims or insurance applications with incorrect information every year. We have already given a number of examples of insurance fraud, but there are countless more to come. For example, people lie about the contents of their suitcase if they lose it on holiday. Or they might give up a very expensive camera that they perhaps didn't have with them at all. People also regularly take photos of damage from the Internet in order to file a false claim.
Reporting insurance fraud
Do you suspect insurance fraud? Then you can report this (also anonymously) to the Insurance Crime Control Centre (CBV) of the Dutch Association of Insurers. The CBV helps insurers to combat insurance crime. You can report at [email protected] or call 070-333 85 00.
Insurance fraud penalty
However, certain penalties are attached to committing insurance fraud. For example, since 2016, SODA has been demanding a standard fine of €532. SODA stands for Service Organisation Direct Liability. In addition, insurers can recover the costs incurred for investigating the fraud from the fraudster. In some cases, the fraud will also be reported to the police. Insurers do this particularly when the amount of fraud is very high, or in cases of organised crime.
Insurance fraud investigation
Does the insurer suspect fraud? Then they must, of course, be able to prove it. These investigation costs can mount up considerably, especially if an external investigation agency or expert has to be hired. If it turns out that fraud has indeed been committed, these investigation costs will be recovered from the fraudster. After all, if there had not been a fraud, there would have been no need to start an investigation and these costs would not have been incurred. Therefore, any investigation costs are always for the account of the fraudster.
Insurance fraud consequences
If you are caught committing insurance fraud, this can have unpleasant consequences. The insurer will not pay compensation for the damage if it turns out that you have committed fraud. Did you stage a burglary, for instance? Then all those costs are for your own account. In addition, the insurer has the right to cancel your insurance immediately. This means that you are no longer insured. Furthermore, you will be registered as a fraudster in the database of the CIS Foundation. Your details will then be visible to all affiliated insurers. With a CIS registration it becomes a lot harder to take out a new insurance. Moreover, you will probably pay a lot more money for your insurance.
Limitation period for insurance fraud
Insurance fraud is not taken lightly by an insurer. Persons who have committed fraud represent a great risk for insurance companies. A report of insurance fraud therefore remains the longest of all reports. The statute of limitations for insurance fraud is about 8 years. During these 8 years the report is visible for every affiliated insurer.
Insurance fraud investigation
Does the insurer suspect fraud? Then they must, of course, be able to prove it. These investigation costs can mount up considerably, especially if an external investigation agency or expert has to be hired. If it turns out that fraud has indeed been committed, these investigation costs will be recovered from the fraudster. After all, if there had not been a fraud, there would have been no need to start an investigation and these costs would not have been incurred. Therefore, any investigation costs are always for the account of the fraudster.
Insurance fraud consequences
If you are caught committing insurance fraud, this can have unpleasant consequences. The insurer will not pay compensation for the damage if it turns out that you have committed fraud. Did you stage a burglary, for instance? Then all those costs are for your own account. In addition, the insurer has the right to cancel your insurance immediately. This means that you are no longer insured. Furthermore, you will be registered as a fraudster in the database of the CIS Foundation. Your details will then be visible to all affiliated insurers. With a CIS registration it becomes a lot harder to take out a new insurance. Moreover, you will probably pay a lot more money for your insurance.
Limitation period for insurance fraud
Insurance fraud is not taken lightly by an insurer. Persons who have committed fraud represent a great risk for insurance companies. A report of insurance fraud therefore remains the longest of all reports. The statute of limitations for insurance fraud is about 8 years. During these 8 years the report is visible for every affiliated insurer.
Contesting insurance fraud
Are you suspected of insurance fraud? This can have major consequences. We are not only talking about financial consequences, but also about a registration as fraudster. This has a lot of influence on your (future) insurance. In some cases, the insurer decides to report the fraud, which can lead to criminal sanctions. A registration as fraudster does not simply disappear from the system. If you believe that the registration is unjustified, you can challenge it. If you are suspected of insurance fraud, it is sometimes wise to contact a lawyer immediately.
Car insurance fraud
Car insurance fraud is one of the most common forms of insurance fraud. For example, someone might report his or her car as stolen, even though it is parked in the garage. Or someone quickly adjusts the coverage of their car insurance and only then claims the damage so that the damage is covered and compensated. There are countless examples of insurance fraud involving car insurance. Are you caught for car insurance fraud? Then it will be difficult to get a new car insurance in the future.
Insurance fraud registration
In order to warn other insurers, your personal data will always be registered if you are caught committing insurance fraud. You will then be registered with Stichting CIS. CIS stands for Central Information System. When assessing an insurance application, an insurer will always check the database of Stichting CIS to see whether you have been registered and why. Are you registered for insurance fraud? Then there is a big chance that the insurer will reject your application. You then pose too great a risk.
Contesting insurance fraud
Are you suspected of insurance fraud? This can have major consequences. We are not only talking about financial consequences, but also about a registration as fraudster. This has a lot of influence on your (future) insurance. In some cases, the insurer decides to report the fraud, which can lead to criminal sanctions. A registration as fraudster does not simply disappear from the system. If you believe that the registration is unjustified, you can challenge it. If you are suspected of insurance fraud, it is sometimes wise to contact a lawyer immediately.
Car insurance fraud
Car insurance fraud is one of the most common forms of insurance fraud. For example, someone might report his or her car as stolen, even though it is parked in the garage. Or someone quickly adjusts the coverage of their car insurance and only then claims the damage so that the damage is covered and compensated. There are countless examples of insurance fraud involving car insurance. Are you caught for car insurance fraud? Then it will be difficult to get a new car insurance in the future.
Insurance fraud registration
In order to warn other insurers, your personal data will always be registered if you are caught committing insurance fraud. You will then be registered with Stichting CIS. CIS stands for Central Information System. When assessing an insurance application, an insurer will always check the database of Stichting CIS to see whether you have been registered and why. Are you registered for insurance fraud? Then there is a big chance that the insurer will reject your application. You then pose too great a risk.
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