Insurance fraud costs each household €150 annually. Among the most common cases are car theft and false claims. Our legal expert details the dangers you face in case of insurance fraud.
Types of Insurance Fraud
Insurance fraud is of two types. On one hand, there is fraud at the time of contract subscription, and on the other hand, fraud in the declaration of a claim.
Fraud at the time of contract subscription involves, for example, inaccurately stating the value of the insured property, insuring a non-existent property, or omitting data.
Fraud in the declaration during the contract involves inaccurately describing a claim, exaggerating the extent of the damage, or falsifying documents.
Sanctions
From a criminal perspective, insurance fraud is not specifically defined in the Penal Code.
However, numerous provisions allow the insurer to file a complaint against the fraudster, such as fraud, forgery, false testimony, and arson.
Furthermore, the aggrieved insurer can also rely on the terrestrial insurance contract law to cancel or terminate the insurance contract.
To do this, the insurer distinguishes between fraud and good faith omission, with unintentional breaches being treated more leniently.
The insurer will not be required to compensate the insured who intentionally caused a claim and may retain the premiums already paid.
In addition, the name of the fraudster, as well as those of the people involved in the fraud, will be recorded in the Datassur file for a period of 10 years.
As a result, the fraudster will face significant difficulties in subscribing to another policy with another insurer who has consulted the said file.
Recommendations
Favor transparency and honesty with your insurer! Provide them with correct and complete information to avoid exposing yourself to severe sanctions.