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Insurance Fraud Exposed: From False Claims to Networks in the Hofstad
Verzekeringsfraude

Insurance Fraud Exposed: From False Claims to Networks in the Hofstad

In Den Haag, fictitious claims and organised networks are increasingly appearing around well-known locations such as Hofweg. Strict detection and heavy sanctions at the Rechtbank Den Haag make the risk high.

3 min leestijd

In a parking garage under the city hall on Hofweg in Den Haag, a ‘stolen’ car was once reported that later turned out to have been sold. Such cases show how insurance fraud manifests locally. The Nederlandse Vereniging van Banken calculates that honest premium payers pay approximately € 950 million extra annually due to these practices. Detection is sharper than ever and penalties follow swiftly.

The severe sanctions for fraud

Civil law

  • Recovery of amounts paid out
  • Extrajudicial costs (lawyer’s fees of the insurer) are recovered
  • Policy termination plus exclusion from future cover
  • Registration in the CIS for five to eight years, visible to all insurers

Criminal law

Fraud (section 326 of the Dutch Criminal Code) carries a maximum of four years’ imprisonment or a fine of up to € 90,000. Organised networks fall under section 140 of the Dutch Criminal Code and can result in six years’ imprisonment. The Public Prosecution Service (OM) handles reports at the Rechtbank Den Haag with extra attention in cases of recidivism or large amounts.

Professional and social consequences

A conviction often affects daily life: refusal of a Certificate of Good Conduct (VOG), difficulties with mortgages and exclusion from financial professions. In Den Haag we regularly see this among clients who later contact the Juridisch Loket Den Haag.

Which types of fraud occur?

Fictitious damage claims

Damage that never existed is nevertheless reported. A bicycle that had already been sold, or an accident that was deliberately caused. False police reports and witness statements often accompany these claims.

Inflated actual damage

The damage is real, but the amount is substantially increased. Examples include inventory lists with non-existent items, unrealistic repair quotations or exaggerated damages for pain and suffering.

Non-disclosure at inception

Intentional non-disclosure falls under the duty of disclosure (section 7:928 of the Dutch Civil Code), but can still be classified as fraud if deception is proven.

Identity fraud

Claims made in another person’s name or policies taken out on deceased persons. Often linked to money-laundering practices.

Organised networks

Carousel fraud involving staged incidents, false medical reports and complicit garages. Damage per case runs into tens of thousands of euros. The police and the CIS work together to dismantle these networks around Den Haag.

Detection techniques in practice

Since 2010 insurers have used advanced methods:

  • Big-data analysis of claim patterns per district
  • CIS check against the national database
  • Social-media checks on Facebook and Instagram
  • Private investigators who produce footage of movements
  • Internal fraud departments at every major insurer

What to do in case of a wrongful accusation?

Insurers sometimes make mistakes. Follow these steps:

  1. Request written substantiation
  2. Respond factually with evidence
  3. Instruct a lawyer before making any statements
  4. Consider proceedings before Kifid or the civil court
  5. Request removal from the CIS in case of wrongful registration

Visit our Arslan office at Koningin Julianaplein for an initial consultation. The consequences rarely outweigh any short-term gain.