Uniting against insurance fraud
Insurance fraud costs an estimated $2 billion a year in Australia – to the detriment of legitimate businesses and individuals who bear higher premiums as a result.
Fraudulent claims can include exaggeration of otherwise-legitimate claims, deliberate misrepresentation of the facts or organised manipulation to gain a financial advantage when there has been no loss.
Insurers collect, share and analyse information to help counter insurance fraud and identify fraudulent claims.
RentCover General Manager, Sharon Fox-Slater, said insurance fraud was a serious criminal offence with penalties including substantial fines or jail time.
“Fraudulent claims don’t just increase costs directly through undeserved payouts, there’s also an indirect effect – the industry devotes significant resources to combating fraud,” she said.