Insurance Fraud Cases Rise Year Over Year

Prague, Aug 6 (CTK) – The volume of uncovered insurance frauds grew moderately in the first half of this year, it reached hundreds of millions of crowns in total, according to a poll that CTK made among the largest domestic insurers.


The most frequent frauds are in mandatory car insurance, the number of cases is increasing in particular in life and accident insurance.


Ceska pojistovna dealt with insurance frauds worth Kc211m in the monitored period, Kc9m higher than a year earlier, its spokeswoman Ivana Buriankova told CTK.


Frauds for Kc41m were uncovered in Prague, while the Vysocina Region saw only cases for Kc60,000.


Kooperativa detected 667 suspicious insurance claims, almost 100 fewer year on year.


“We managed to prove insurance frauds in 426 cases. The total saved amount of money reached Kc166m, a half higher than in 2016,” said the insurer’s security department head Vojtech Stavny.


The ratio of the detected frauds in motor vehicle insurance, accident and life insurance is quite balanced, he added.


Allianz tackled 1,046 suspicious cases and uncovered frauds worth Kc156m, down Kc14m yr/yr.


“Our control mechanisms are increasingly tougher so we have managed to reach the ideal situation when those who try their luck in insurance frauds avoid Allianz,” said the insurer’s spokesman Vaclav Balek.


Ceska podnikatelska pojistovna (CPP) dealt with 370 suspicious cases and detected insurance frauds for Kc14m, roughly the same amount as a year earlier. Motor vehicle insurance frauds are still the most frequent, they make up over a half of all the proven cases, said Ales Haisl of CPP.


Individuals account for the majority of insurance frauds. Organised groups commit fewer frauds which, however, have a big financial impact, Buriankova said.


Insurance fraud is a crime that hundreds of offenders a year are charged with in the Czech Republic, with the maximum sentence being ten years in prison.