Stay up to date with news releases and notices from the Manitoba Financial Services Agency (MFSA).
Exaggerating the losses in an insurance claim or claiming a loss on something that was never owned can be considered insurance fraud. Insurance fraud is a crime and people who commit insurance fraud can be charged.
| Types of Insurance Fraud | Description |
|---|---|
| Insurance Fraud | How it works:After losing a wedding ring, a claim is made that exaggerates the size and value of the diamond.A friend or acquaintance is hired to steal a high-priced item in a home and sells the item for profit. The profit is shared between the friend and the claimant, and an insurance claim is filed to collect additional payment for that item.A fire destroys a home and claims are made for items that were never owned.The power is disrupted in a home, resulting in damages to the home and spoiled food in the fridge and freezer. Several pounds of frozen meat are fraudulently listed as foods that were spoiled. |
| Vendor Fraud | Insurance fraud can also take place by contractors hired to fix a damaged home or to replace a valuable item. Insurance fraud by contractors is known as restoration fraud. Always ask for a written contract when seeking restoration services, hire professional contractors, and provide a paper trail when you pay for services or replacement products related to insurance claims. |