It may seem that making a false insurance claim doesn’t hurt anybody. It is just a false claim, and it cannot be so consequential. But, in reality, it is a bad practice, and a policymaker and other falsely alleged persons can be affected by false insurance claims financially and socially. So, what is a false insurance claim in Canada? Is it a punishable act? Let’s find out in detail in this article.
False Insurance Claims Punishment in Canada
We can start with the false insurance claim and then proceed to its punishment. A false insurance claim is an act of fraudulence. A trickster has a specific intent to commit this kind of activity. It is a planned activity solely done for the harm of the insurer or to obtain payment from the insurer as a result of a false insurance claim. So, making a fraudulent insurance claim is an act of crime. Also, there are ranges and different punishments for that, such as jail time for fraud under $5000 won’t be the same for amounts larger than that. It is most harmful to the policymaker because an insurance company can cause a subsequent loss of money.
What a False Insurance Look Like?
A fake or false insurance claimer may improvise the claim, exaggerate it, and cause the accident knowingly. The false insurance claim involves Showing or claiming more damage fee than the actual amount
- Deliberately doing any damage or setting fire, Failing to show conclusive evidence or provide any information. According to the Insurance Bureau of Canada, the following issues also fall under false insurance claims:
- Willingly falsifying the insurance application
- Asking for the earlier damage of the car and also for new accident
- Demanding nonexistent injuries claim after an accident
- Asking for a claim of harm or injury that has never happened
False Insurance Claim Punishment
The false insurance claim is a crime, and under proven circumstances, you may face severe punishment and jailing. There can be several degrees of penalties and consequences for false imprisonment. If the false insurance claim is proven, the insurer may refuse to pay the policy money or neutralize the policy. One can also be jailed for a long time and fined for a false insurance claim. On the other hand, you can be on a criminal record due to a proven false insurance claim. Additionally, a person with a fraud insurance claim may not get a new insurance policy. How to Handel the Potential Insurance Scam If you are at the scene of an accident and find yourself in the stage of a victim of a potential insurance scam, these tips can help you avoid that situation.
Keep a Record of the Accident
In the post-accident period you have just experienced, the other part tries improvising the actual scenario. In that case, you had better keep the evidence of the real incident, take photos of the damages, and manage a witness who can explain the exact scenario. It will be better if you keep a note of their verdict.
Go to Legal Authority
After the incident, you should immediately inform the legal authority, like the local police department, and explain the situation properly. You can physically go to the station or call the emergency number. It will make it easier for you to avoid any potential insurance scams. Take Nots and Keep the Evidence You can personally keep notes of every detail of the collision. It will be easier to handle any legal activities following the crash.
Go to Your Insurer
If you feel you will face a false claim, immediately tell your insurance company and show the evidence to avoid the potential scam.
False insurance can be of any type. To be safe, carefully manage the pressure of asking for your insurance replacement with someone else. Be cautious when the insurance company asks for your personal information; eventually, don’t fall under identity theft.
Moreover, you should avoid money-transferring services on the spot of the accident. Lastly, if you suspect anything from the insurer or the party involved in the accident, contact your provincial insurance regulator and the legal authority.
Final Thought
Under certain and proven circumstances, a false insurance claim or insurance scam is a punishable crime, and you may face severe financial and physical consequences. The punishment includes jailing for several years and monetary penalties depending on the severity of the false claim. After all, you shouldn’t go for any false insurance claim as a sensible citizen of Canada.
