Filing a fraudulent personal injury claim can have serious financial and legal consequences. The insurance company can deny the claim and drop all further coverage. They can also hold you liable for any money paid to you involving the claim, costs expended in investigating the fraud, and in some cases even punitive damages. A fraudulent claim can also lead to criminal charges.
The most common type of personal injury fraud is an act taken with the goal of getting an insurance company to compensate for an injury that is nonexistent, exaggerated, or unrelated to the accident addressed in the claim. This can include faking injuries or staging a theft or collision. It is important to keep in mind that you can file a fraudulent claim even if you did not lie or make any false representations. Simply failing to include information that you were under a legal duty to disclose can make a claim fraudulent.
There are two basic kinds of fraudulent personal injury claims: soft insurance fraud and hard insurance fraud. Soft is the most common. An example of soft insurance fraud would be exaggerating the severity of a neck injury. This is where you must be careful to maintain a balance between aggressively pursuing the full amount you are entitled to and making sure you represent your injuries and damages accurately. If there is ever any doubt or question as to whether something should or should not be reported, it is highly advisable to consult an experienced personal injury attorney.
Nevada’s statutory definition of insurance fraud (686A.2815) includes the following: “Presenting any statement to an insurer while knowing that the statement conceals or omits facts, or contains false or misleading information about any fact material to an application for the issuance of an insurance policy.” The criminal penalties for insurance fraud can include up to 4 years in prison, a fine of up to $5,000, and possible restitution to the victim.
With over 45 years of handling personal injury lawsuits and claims of every description, our attorneys put you in the best possible position to win your suit or receive the full amount of compensation you are entitled to. Give us a call at 702-388-4476 to learn more.