6.3.10 Insurance fraud
- 6.3.1 Where you can get insurance
- 6.3.2 Choosing an insurance agent or broker
- 6.3.3 Choosing an insurance company
- 6.3.4 Tips for buying insurance
- 6.3.5 Video: Tips for buying insurance
- 6.3.6 Making a claim
- 6.3.7 Case study: Reading the fine print
- 6.3.8 Read the fine print
- 6.3.9 Consumer rights and responsibilities
- 6.3.10 Insurance fraud
- 6.3.11 Summary of key messages
"When an insured person makes a false claim, no one gets hurt." True or false?
False! Insurance fraud hurts honest policyholders by driving up the cost of insurance for everyone.
- Insurance fraud: Any act committed with the intent to fraudulently obtain payment from an insure
Insurance crimes range in severity, from slightly exaggerating claims to deliberately causing accidents or damage. Examples:
- A person who is involved in a collision claims more damage than was really done to the car.
- A person deliberately sets a fire in order to receive payment for damages.
- Someone fails to disclose information, such as a previous medical condition, to obtain insurance that he or she would not qualify for.
- A health care provider that bills for services that were not provided.
Insurance fraud is a crime, and there are serious consequences:
- If a false claim is proven, the insurance company won't pay the claim and may cancel the policy.
- If a false claim is made, the insurer can sue for any costs and damages.
- A false claim can result in jail or large fines, and a criminal record that can affect the future prospects of anyone found guilty.
- Insurance companies may refuse to sell insurance to people involved in false claims.
How to protect yourself
Insurance scams can take many forms. Here are a few tips on how to avoid them:
- Be careful if a salesperson pressures you to replace the insurance you have with something else.
- Beware of any email message that claims to be from your insurance company and asks you to confirm or give personal information. It is likely an attempt at identity theft.
- Do not pay your premiums through a money transfer or money wiring service.
- If you suspect that an insurer or service provider is engaged in an insurance scam, contact your provincial or territorial insurance regulator.
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