In this article on Stuff Rob Stock explains the consequences of getting caught carrying out a fraudulent insurance claim. Petty criminals and bankrupts have their records cleared after a number of years but once a person attempts insurance fraud it stays on the records permanently.
Natasha McFlinn, IAG’s fraud intelligence manager says 10 per cent of claims by number contain elements of fraud. Among commercial claims it is around half that, and around double for travel insurance claims. Those figures have not been externally verified.
The Insurance Council estimates, fraud adds around $350 million to the cost of insurance each year.