Motor Vehicle Insurance Fraud
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COMMON REASONS WHY PEOPLE COMMIT MOTOR VEHICLE 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 MOTOR VEHICLE INSURANCE FRAUD?
We all do, in the form of increased premiums. MOTOR VEHICLE INSURANCE FRAUD IS A CRIME Section 431:10C-307.7, 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. The law applies to all claims under any type of automobile coverage including personal injury protection, bodily injury liability and property damage coverage.
INSURANCE FRAUD PENALTIES
A person who commits motor vehicle 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 