COMMON REASONS WHY PEOPLE COMMIT INSURANCE FRAUD
People who normally would not engage in criminal behavior commit insurance fraud because they:
- Perceive it as a victimless crime perpetrated against a faceless insurance company.
- Hope to make up for premiums they had paid in the past.
- Think many people inflate or falsify insurance claims.
- Believe they will not get caught.
- See it as a quick and easy way to make money.
WHO PAYS FOR INSURANCE FRAUD?
We all do, in the form of increased premiums. INSURANCE FRAUD IS A CRIME Section 431:2C, Hawaii Revised Statutes, makes it illegal to present a false claim, to present false information on a claim or to seek legal recovery through these means.
INSURANCE FRAUD PENALTIES
A person who commits insurance fraud can be charged with a:
- Class B felony – if the value of the benefits, recovery or compensation obtained or attempted to be obtained is more than $20,000.
- Class C felony – if the value of the benefits, recovery, or compensation obtained or attempted to be obtained is more than $300.
- Misdemeanor – if the value of the benefits, recovery, or compensation obtained or attempted to be obtained is less than $300.
REPORTING OF INSURANCE FRAUD
To report suspected insurance fraud, call the Insurance Fraud Investigation Branch hotline at (808) 587-7416 or complete and send a Suspected Fraudulent Claim Referral form to the branch. Review the instructions and mail completed form to:
Hawaii Insurance Division
Insurance Fraud Investigation Branch
335 Merchant Street, 2nd Floor
Honolulu, Hawaii 96813
Click here to obtain the Suspected Fraudulent Claim Referral Form (PDF) .