Scroll Top


    Fake Claims


    Fake claims are those insurance claims that are made with fraudulent intentions. Fake claims are exaggerated and false and are made by the policyholders to gain financial benefits from their insurance policy purchased from the insurer. These practices are illegal. However, these are commonly found, and the insurance companies have a separate team to identify such claims filed by the policyholders.

    Breaking Down Fake Claims

    Fake claims are overstatement of legally acceptable claims made by policyholders. For instance, a policyholder of a house insurance policy might have been robbed of his belongings kept at home by a robber.

    The policyholder in a bid to make additional gains from the policy may exaggerate the list of items stolen from the house in his claim report. He might say that his items are worth way more than what they actually are. The policyholder might have made this overstatement with an intention to claim a much larger amount from the insurer in the claim settlement. This is the reason why insurance companies often investigate claims that are of higher quantum.

    How Insurers Identify Fake Claims

    Insurance companies will try to identify patterns in the type and frequency in recent claims. Insurers generally maintain records of insurance claims that they receive and conduct investigations to analyse the numbers they obtain out of it. This will help insurance companies to figure out the individuals that are more than likely to file claims and abuse the system.

    If the claim is not matching with the general pattern, then the insurance companies will make a note of it. Apart from that, the insurers will make use of several indicators to find probable reasons for receiving fake claims. Insurers, to find out fake claims, get support from investigation units. These units employ professionals who are capable of performing background checks and have obtained permission for the same from the required departments.

    Popular Topics

    Latest Articles

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use


    ISO 27001

    Data Center


    SSL Certified Site

    128-bit encryption