Motor Injury Insurance Fraud

14 June 2017

The Insurance Commission of Western Australia (Insurance Commission) takes it’s approach to fraudulent activities very seriously and today, following an ongoing investigation, a claimant was found guilty of two offences relating to fraud in the Joondalup Magistrates Court.

In September 2015, a vehicle was struck from behind on Ashbourne Avenue, Ridgewood. The claimant reported neck, shoulder and knee injuries as a result of the crash.  

This claim was investigated by the Insurance Commission after fraud indicators highlighted areas of suspicion.

Payslips and claim forms submitted by the claimant to support an economic loss claim were found to be false. Subsequent inquiries with employers confirmed the discrepancies.

On 14 June 2017, the claimant pleaded guilty to two offences under s27B of the Motor Vehicle (Third Party Insurance) Act 1943:

1. making a statement he knew was false or misleading; and
2. giving information that he knew was false or misleading.

The claimant was fined $1,500, ordered to pay legal costs of $742 and a criminal conviction was recorded.

Magistrate Potter observed the claimant’s actions undermined an important taxpayer funded scheme, and that attempted insurance fraud was not an appropriate case for the imposition of a spent conviction order.

Deputy Chief Executive of the Insurance Commission, Rick Howe, indicated providing false or misleading information as part of a motor injury insurance claim is fraudulent activity and affects all WA motorists.

“People making false statements, or exaggerating their injuries, make motor injury insurance premiums higher for everyone.

“The Insurance Commission uses data analytic tools and takes a serious approach to fraudulent activities, and aims to identify all those attempting to provide false and misleading information as part of their claim,” Mr Howe said.