Insurance Fraud
IAJ, a trusted voice within the insurance industry
- Insurance Fraud
Understanding Insurance Fraud and Why It Matters
Insurance fraud affects everyone. It increases premiums, delays claims, and undermines trust in the insurance system. The Insurance Association of Jamaica is committed to educating the public, promoting ethical conduct, and supporting efforts to prevent and reduce insurance fraud in Jamaica.
What Is Insurance Fraud?
Insurance fraud occurs when a person deliberately provides false, misleading, or incomplete information in order to obtain an insurance benefit to which they are not entitled.
Fraud can happen at any stage of the insurance process — when applying for a policy, making a claim, or assisting someone else in doing so dishonestly.
Insurance fraud is a serious offence and may result in:
Denial of claims
Policy cancellation
Legal action and criminal charges
Common Types of Insurance Fraud
Motor Insurance Fraud
Staging accidents
Exaggerating damage or injuries
Making false theft or accident claims
Property Insurance Fraud
Inflating the value of lost or damaged items
Claiming for damage that existed before the policy started
Deliberate destruction of property
Health & Life Insurance Fraud
Providing false medical information
Making claims for services not received
Concealing pre-existing conditions
The Effect of Insurance Fraud
The Insurance Association of Jamaica is committed to educating the public, promoting ethical conduct, and supporting efforts to prevent and reduce insurance fraud in Jamaica.
Insurance fraud is not a victimless crime. Its impact is felt across the entire society.
Fraud leads to:
Higher insurance premiums for honest policyholders
Increased costs for businesses and households
Delays in processing legitimate claims
Reduced trust in the insurance system
Ultimately, insurance fraud makes insurance less affordable and less accessible for everyone.
You can help reduce insurance fraud by:
- Providing accurate and honest information at all times
- Reviewing your policy documents carefully
- Reporting suspicious activity or fraud concerns
- Avoiding individuals who encourage dishonest claims
If something seems too good to be true, it probably is.
The Insurance Association of Jamaica works closely with its member companies, regulators, and law enforcement agencies to:
- Promote fraud awareness and prevention
- Encourage ethical industry practices
- Support information sharing and cooperation
- Educate the public on the consequences of fraud
Through its Fraud Committee, the IAJ remains committed to protecting the integrity of the insurance industry and the interests of the insuring public.