What Are the False Insurance Claims Punishment in Canada?
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 move on to its punishment.
A false insurance claim is an act of fraudulence. And 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 obtaining 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 on 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. And 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 you find yourself in the stage of a victim of a potential insurance
scam, these tips can help you avoid that situation.
Keep the Record of the Accident
In the post-accident period, you have just experienced, the other part tries to improvise the actual
scenario. In that case, you 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 you keep the 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
be easier for you to avoid any potential insurance scam.
Take Nots and Keep the Evidence
You can personally keep notes of every detail of the collision. It will be easier for you to handle any legal
activities followed by the crash.
Go to Your Insurer
If you feel that you are going to face a false insurance claim, immediately teel your insurance company
and show the evidence to avoid the potential scam.
False insurance can be of any type. If you want to be on the safe side, carefully manage the pressure of
asking for your insurance replacement with someone else. Be cautious with the insurance company asking
for your personal information, and eventually, don’t fall under identity theft.
Moreover, you should avoid money transferring services on the spot of the accident. Lastly, for any
suspicion from the insurer or the party involved in the accident, try to contact your provincial insurance
regulator and the legal authority.
Final Thought
Under certain and any proven circumstances, a false insurance claim or insurance scam is a punishable
crime, and you may have to face severe consequences financially and physically as a result.
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.
