Those found guilty of insurance fraud are handled as criminals, and in addition to receiving prison sentences, offenders may also be fined, usually between R3 000 and R10 000.

Consumers need to be aware that if found to have committed insurance fraud and convicted, they will have a criminal record that will prevent them of obtaining insurance for any possessions for the rest of their lives.

Fraud continues to be very costly to the industry. What the consumer needs to realize is that it is the honest insurance customers that are subsidizing those who commit fraud in the form of increased premiums

Client-industry interaction on the fraud issue has greatly improved following the establishment of a fraud line by theSouth African Insurance Association (SAIA) in cooperation with Deloitte and Touche.

When a tipoff is received the industry as a whole is notified, not just the particular insurer.

Therefore, honest customers should actively assist the industry in trying to stamp out these illegal practices

Members of the public who wish to report any alleged insurance fraud or inappropriate behavior can contact the Insurance Fraud line on:

FreeCall telephone: 0800 25 26 27
FreeCall fax: 0800 00 77 88

“Courtesy – internet article –”