Insurance fraud is deliberate deception intended to obtain improper insurance benefits or another unlawful advantage. Examples can include staged losses, invented bills, or knowingly false application statements. An honest mistake is not automatically fraud, and the legal assessment depends on facts and applicable law.
In Nepal, keep genuine records and correct errors promptly in applications and claims. Inflating a loss can jeopardise an otherwise legitimate claim and create legal consequences. Good documentation and clear disclosure of material facts help both customers and insurers distinguish valid claims from misleading submissions.