Fraudulent Claim

Definition - What does Fraudulent Claim mean?

A fraudulent claim, in the context of insurance, is a claim based on a misrepresentation of facts with the intention of wrongfully gaining insurance benefits.

A fraudulent claim is also known as a false insurance claim.

Insuranceopedia explains Fraudulent Claim

A fraudulent claim may be classified as hard and soft fraud. The former is when a claimant deliberately plans, invents, or creates a loss covered by the insurance policy, while the latter occurs when a claimant exaggerates a legitimate claim or gives false information to obtain bigger gains. Making fraudulent claims is a crime, no matter what the outcome may be. Because they make up a significant portion of the total claims filed, losses for insurers are estimated to be in the billions every year.

Connect with us

Insuranceopedia on Linkedin
Insuranceopedia on Linkedin
Tweat cdn.insuranceopedia.com
"Insuranceopedia" on Twitter


'@insuranceopedia'
Sign up for Insuranceopedia's Free Newsletter!