Press Release

Twenty two individuals have today been arraigned in court and accused of defrauding or attempting to defraud insurance companies of several thousands of euro in motor vehicle claims. The alleged insurance fraud occurred in the years between 2009 and 2012. Some of the individuals admitted the charges brought against them.

Today’s arraignments are the latest episodes in the insurance industry’s ongoing battle against insurance fraud, and follow intensive police investigation triggered by state-of-the-art anti-fraud software which motor insurers have heavily invested in. The alleged fraud incidents were a combination of staged accidents, inflated claim requests and the submission of multiple claims with different insures utilising the same damaged vehicles.

The Malta Insurance Association wishes to take this opportunity to thank the Economic Crime Unit of the Malta Police, particularly Inspector Rennie Stivala and the insurers concerned for their effort and for the strong collaboration which helped achieve these results.

Insurance Fraud is often perceived as a victimless crime. The reality is very different. The amount of premium paid by policyholders is affected by additional costs induced by insurance fraudsters. Insurers are therefore relying on greater vigilance of suspicious claims to ensure that honest policyholders do not end up subsidizing fraudulent claims through higher premiums.