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.
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