What is Insurance Fraud?

Insurance fraud is generally defined as when someone intentionally deceives another about an insurance matter to receive money or other benefits not rightfully theirs.

In Western Australia, suspected fraudulent claims can be addressed by application of

1. Any person who, with intent to defraud, by deceit or any fraudulent means:
1. obtains property from any person;
2. induces any person to deliver property to another person;
3. gains a benefit, pecuniary or otherwise, for any person;
4. causes a detriment, pecuniary or otherwise, to any person;
5. induces any person to do any act that the person is lawfully entitled to abstain from doing; or
6. induces any person to abstain from doing any act that the person is lawfully entitled to do, is guilty of a crime and is liable -
7. if the person deceived is of or over the age of 60 years, to imprisonment for 10 years; or
8. in any other case, to imprisonment for 7 years.

Alternative offence: s. 378, 414 or 428.

Summary conviction penalty (subject to subsection (2):

1. in a case to which paragraph
2. applies: imprisonment for 3 years and a fine of $36 000; or
3. in a case to which paragraph
4. applies: imprisonment for 2 years and a fine of $24 000.

2. If the value of -
1. property obtained or delivered; or
2. a benefit gained or a detriment caused;

is more than $10 000 the charge is not to be dealt with summarily.

3. It is immaterial that the accused person intended to give value for the property obtained or delivered, or the benefit gained, or the detriment caused.