Definition of Fake claims:
The term fake claims refers to insurance claims that are made fraudulently. These claims are made in an attempt for the policyholder to benefit financially from making claims that are false or exaggerated. While such practices are a fairly common occurrence, they are highly illegal.
False or exaggerated insurance claims that are made fraudulently. The intent is to benefit financially from a covered event.
Fake claims are often exaggerations of valid claims to an insurance policy. For example, a homeowner insurance policyholder may have been the victim of a breaking and entering where items were stolen. The number (and value) of the stolen items may be exaggerated on the claims report, indicating that more items were stolen than really were. This exaggeration could lead to the homeowner receiving a larger claim settlement than they are truly entitled. Large claims are often investigated to mitigate such problems.
Meaning of Fake claims & Fake claims Definition