Fraudulent Claim

What Does Fraudulent Claim Mean?

A fraudulent claim, in the context of insurance, is a claim that involves the misrepresentation of facts with the intent to wrongfully obtain insurance benefits.

This type of claim is also known as a false insurance claim.

Insuranceopedia Explains Fraudulent Claim

Fraudulent claims can be classified as either hard or soft fraud. Hard fraud involves a claimant deliberately planning, inventing, or creating a loss to receive insurance benefits, while soft fraud occurs when a claimant exaggerates a legitimate claim or provides false information to obtain greater compensation. Making fraudulent claims is a crime, regardless of the outcome. Fraudulent claims constitute a significant portion of total claims filed, with losses for insurers estimated to be in the billions each year.