Legal Definitions - fraudulent claim

Fraudulent Claim

A fraudulent claim is a false insurance claim made with the intention of deceiving the insurer. It is a knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment. Fraudulent claims are illegal and can result in criminal charges.

• Submitting a claim for damages that did not occur
• Exaggerating the extent of damages to receive a larger payout
• Claiming for pre-existing damages as if they were new

For example, if someone submits a claim for damages that did not occur, they are committing a fraudulent claim. They are intentionally deceiving the insurer to receive a payout they are not entitled to.