Imagine an IT employee from the Oosterheem district who commutes daily via the A12 to Den Haag and reports an accident that never occurred. Insurance fraud is the intentional deception of an insurer with the aim of obtaining a benefit to which no lawful entitlement exists. The Nederlandse Vereniging van Banken estimates that insurance fraud generates approximately € 950 million in additional premiums each year for honest policyholders. An escalating problem with severe legal consequences.
Detection of fraud through modern techniques
Since 2010, insurers have significantly modernised their fraud detection. Big-data analysis identifies patterns in claims based on frequency, type and geography. A CIS check compares policyholders against the central database. Social-media screening on Facebook, Instagram and LinkedIn reveals inconsistencies. Private investigators are frequently engaged where suspicion arises to obtain footage of movements. Every major insurer maintains its own fraud department.
The different types of insurance fraud
1. Fictitious damage claim
The most serious form: damage that never occurred is reported. For example, a “theft” of a bicycle that was in fact sold, or an “accident” involving intentionally caused damage. Often accompanied by false documents such as police reports and witness statements.
2. Exaggeration of actual damage
The most common form: genuine damage is reported, but the amount is inflated. Examples include a list of stolen household contents containing items that were never present, repair quotations that are not representative, and claims for non-pecuniary damages for pain that is in reality minor.
3. Non-disclosure at inception
Failure to disclose information is technically not fraud but falls under the duty of disclosure (article 7:928 BW). It enters the realm of fraud only where intentional deception can be proven.
4. Identity fraud
Submitting a claim in another person’s name or taking out policies in the names of deceased persons. Often combined with money laundering.
5. Organised fraud
Networks operating through “carousel fraud” — staging accidents on routes such as the A12, submitting false medical reports, or colluding with fraudulent medical practitioners or garages. Losses per case often amount to tens of thousands of euros; the total impact runs into millions. The police and the CIS cooperate with insurers to map such networks.
Legal consequences
Civil-law consequences
- Recovery of the amount paid out
- Extrajudicial costs (the insurer’s legal costs) are payable by you
- Policy termination and exclusion from future insurance policies
- Registration in the CIS for 5–8 years — visible to other insurers as well
Criminal-law consequences
Insurance fraud constitutes fraud (article 326 Sr): punishable by a maximum of four years’ imprisonment or a fine of the fifth category (€ 90,000 in 2026). In cases of organised fraud, up to six years’ imprisonment (article 140 Sr — participation in a criminal organisation). Reports are taken seriously by the Public Prosecution Service, particularly where large sums or repeat offending are involved.
Professional and social consequences
A fraud conviction may result in loss of access to financial professions, refusal of a Certificate of Conduct (VOG) and difficulties obtaining mortgages or insurance elsewhere.
What if you are wrongly accused of fraud?
Insurers are strict — but not always correct. If accused, request written substantiation of the allegation, respond factually and in detail with supporting evidence, instruct a lawyer before making extensive statements, and apply to Kifid or the civil courts if the insurer maintains its position. In the event of CIS registration, you may request removal where the registration is unjustified. For local advice you may contact the Juridisch Loket Zoetermeer or the office of Arslan at Argonstraat 26, 2718 SN Zoetermeer (070 - 4500 300). Cases are heard by the Rechtbank Den Haag.
Conclusion
Insurance fraud carries greater risks than ever due to improved detection. The amounts involved are often modest (on average € 1,500 per detected fraud), yet the consequences are severe and long-lasting. Short-term gain almost never outweighs the long-term impact.