Insurance fraud: Consequences, culpability and arrest

Insurance fraud is a serious crime for which there are significant consequences. These can follow you for the rest of your life, even if you didn’t intend to cause harm. But exactly what impact can it have, and how can culpability impact the severity of your sentence? Harewood Law has broken it down below. 

What is insurance fraud?

Insurance fraud is the act of intentionally deceiving insurance companies for financial gain. Insurance fraud can be committed against any type of insurance company, including home, motor or health insurance.

Insurance fraud can be committed in a wide variety of ways, for example:

• Making a false or exaggerated claim

• Staging an accident to gain compensation

• Intentional damage of property staged as a crime committed against you

• Falsifying dates

• Submitting forged documents

• Failing to inform your insurance company of changes that will increase your claim

Insurance fraud sentencing

Insurance fraud is sentenced under the same guidelines as fraud. The extremity of sentencing will depend on the severity of the case.

If you plead guilty, you could face anywhere from community service to a 10 year prison sentence. You will also face a significant fine.

Individuals who may have intentionally waited to change their address on a motor insurance claim will receive a more lenient sentence than organised groups, or someone who stages a robbery.

In some cases, those who commit insurance fraud will receive an ancillary order. For example:

• Restraint order

• Compensation order

• Confiscation order

• Disqualification order

• Financial reporting order

What factors impact insurance fraud sentencing?

As with other crimes, a number of factors will be considered by the court when determining your sentence. These include:

• Previous convictions

• Level of remorse

• Personal circumstances responsible for the crime

• Your character

• The amount of money involved

• Your mental state

Levels of culpability

The level of culpability is assessed depending on the level of intent, premeditation and the role of the offender in the crime. These factors should be balanced to determine the weight of the crime and ultimately settle on a fair and appropriate sentence.

Because insurance fraud is a crime that can only be committed with intention, there is a narrow range of culpability that applies:

High Culpability

To be convicted of insurance fraud with high culpability, one of the following must apply. You must have:

• A leading role in the case of the offense being a group activity

• Involved others in the fraudulent activity

• Abused a position of power or responsibility

• Premeditated the offense to a significant degree

• Committed a sophisticated crime

• Committed the crime over a significant time period

• Deliberately targeted victims due to their vulnerability

• Targeted a large number of victims

Medium Culpability

To be convicted of insurance fraud with medium culpability, one of the following must apply. You must have:

• Played a significant role in the case of the offense being a group activity

• A mix of high and medium culpability criteria that balance each other out

Low Culpability

To be convicted of insurance fraud with low culpability, one of the following must apply. You must have:

• Been involved in the crime through coercion or exploitation

• Not been motivated by personal gain

• Limited awareness of the extent of the crime

• Committed the offence once, with limited to know premeditation

What to do if you are arrested for insurance fraud

If you are taken for questioning by the police, or arrested for insurance fraud, you must immediately seek legal assistance. Avoid speaking to the police without legal counsel, and ask to speak with a solicitor at the earliest opportunity.

Does insurance fraud give you a criminal record

Yes, insurance fraud will go on your criminal record for a set period of time depending on the nature and severity of the crime.

Harewood Law are expert criminal defence lawyers specialising in cases of serious crime, financial crime and fraud.

Our aim is to give every person a chance to fight for justice, as the law allows. We make sure you have the most experienced criminal defence team in your corner to build a robust case defence, and provide legal advice throughout the duration of your case.

Contact us today, we work on both privately funded and serious Legal Aid cases across Leeds, Bradford, Halifax, Wakefield, Huddersfield, Keighley and across West Yorkshire and the UK.

0333 3448377 | info@harewoodlaw.com