Do not fabricate accidents or inflate losses to cheat claims: that is insurance fraud, and those who testify, repair the car, or appraise for you are counted together

Inventing an accident or inflating losses to cheat a claim is insurance fraud; a relatively large amount brings up to 5 years plus a fine of 10000 to 100000 yuan (1万 to 10万). People who deliberately give false proof when testifying, appraising, or assessing property are convicted with you as accomplices. A repairer who agrees with you to fake it is treated as a joint crime. In a Xuancheng, Anhui case, 8 people got 2 to 4 years and each was fined 10000 yuan (1万).

Cost

No money and no time — just do not do it.

Benefit

Criminal Law Article 198 lists five situations. (1) The policyholder deliberately fabricates the subject of insurance — invents an insured object that does not exist. (2) The policyholder, insured, or beneficiary invents a false cause for an insurance accident that occurred, or inflates the degree of loss. (3) Fabricating an insurance accident that never occurred. (4) The policyholder or insured deliberately causing an insurance accident that damages property. (5) The policyholder or beneficiary deliberately causing the insured’s death, disability, or illness. For a relatively large amount: fixed-term imprisonment of not more than 5 years or criminal detention, and a fine of not less than 10000 yuan and not more than 100000 yuan (1万 to 10万). For a huge amount or other serious circumstances: 5 to 10 years, and a fine of 20000 to 200000 yuan (2万 to 20万). For an especially huge amount or other especially serious circumstances: 10 years or more, and a fine of 20000 to 200000 yuan (2万 to 20万) or confiscation of property. The last paragraph of this article covers helpers: appraisers, witnesses, and property assessors in an insurance accident. If they deliberately issue false proving documents and create conditions for someone else’s fraud, they are treated as accomplices to insurance fraud and convicted with the fraudster. Repairers are not among those three roles, but if they agree with you to fake it, they are handled as a joint crime. Criminal Law Article 25: “A joint crime means an intentional crime committed jointly by two or more persons.” Beijing Changping court reported in 2021 that motor-vehicle insurance fraud cases concluded since 2019 were “mainly joint crimes, with auto-repair shops a key industry for the offenses.” Insurance Law Article 27: if no insurance accident occurred but one is falsely claimed, the insurer may terminate the contract and need not refund the premium. Using forged or altered proving materials, or inventing a false accident cause or inflating the degree of loss: the insurer need not pay the overstated part. What was already paid must be returned or compensated. Case: In the Zhang case in Xuancheng, Anhui, Wang and 7 others were sentenced for insurance fraud to fixed-term imprisonment from 4 years down to 2 years, each also fined 10000 yuan (1万). The case also led to a false lawsuit. The insurer assessed loss at 20000 yuan (2万); the parties used a forged vehicle-transfer agreement to gain standing to sue, and the court ordered payment of over 70000 yuan (7万余). That already-effective civil judgment was vacated on retrial on 26 September 2019. The Measures for Anti-Insurance-Fraud Work require risk-information checks at both ends that sell policies and pay claims (underwriting and claims). They also call for exploring a multi-line industry anti-fraud information platform and an anti-fraud intelligence center. Those platforms centrally screen data suspicious for fraud; leads go to industry associations, anti-fraud organizations, and insurers for verification. When crime is suspected, report promptly to public security. The financial regulator and its local offices are to build sound links between administrative enforcement and criminal justice. The link targets public security, people’s procuratorates, and people’s courts (nationwide; issued 31 July 2024)

Notes

The following “harmless” habits all fall within these five items. After a small accident asking the shop to “report a bit more,” folding old damage into this claim, arranging a bump with a friend then reporting, or inventing an accident that never happened. How to buy auto insurance is in Section 5, item 26 (buy enough third-party cover). Deliberately causing a family member’s death after insuring them is expressly punished as several crimes together; see Section 8, item 38 (insuring family). Medical insurance is another set of rules; using a medical-insurance card to buy health products for cash is insurance fraud — see the notes to Section 5, item 13

Sources · 6

1. 全国人大常委会. 中华人民共和国刑法（经刑法修正案十一修正的整合文本）第一百九十八条. flk.npc.gov.cn/detail?id=ff808181796a636a0179…
2. 全国人大 (1997). 刑法（第二十五条，此条未经修正案修改）. spp.gov.cn/spp/fl/201802/t20180206_364975.shtml
3. 北京市昌平区人民法院 (2021-11-23). 昌平法院通报机动车保险诈骗犯罪情况（北京法院网）. bjgy.bjcourt.gov.cn/article/detail/2021/11/id…
4. 全国人大常委会 (2015 修正). 中华人民共和国保险法第二十七条. flk.npc.gov.cn/detail?id=2c909fdd678bf1790167…
5. 国家金融监督管理总局 (2024). 关于印发《反保险欺诈工作办法》的通知. gov.cn/gongbao/2024/issue_11586/202409/conten…
6. 安徽省人民检察院转载《法制日报》(2020-01-13). 杀妻骗保牵出案中案. ah.jcy.gov.cn/jczt/jjslhyqkjc/mtjj/202001/t20…