Fraud is the premeditated commission of a serious criminal offence which merits trial on indictment before a judge and jury in the criminal courts, the same courts where crimes such as armed robberies, serious assaults and even murders are dealt with.
Types of insurance fraud are wide-ranging, from criminal gangs who engage in fraud rings to the individual who exaggerates a claim on their policy to get more money from their insurance company.
People who engage in fraud are often called ‘gentlemen criminals’ or ‘white collar criminals’ but experience from Insurance Confidential and An Garda Siochana show the reality is very different.
Examples of insurance fraud include non-disclosure at proposal stage, or where individuals who find themselves at a loss in circumstances not covered by their insurance policies alter the details of their claims to fraudulently obtain compensation from their insurance company. On the other end of the scale there are crime gangs who have targeted insurance companies as a means of funding their criminal enterprises.
Insurance fraud is a crime and offenders face a maximum fine of up to €100,000 and/or up to 10 years in prison. Convictions are made under the Civil Liability and Courts Act 2004.