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insurance fraud (countable and uncountable, plural insurance frauds)

  1. (law) Deliberate but secret causing of an event, for which a claim for compensation for insured property becomes seemingly lawful according to the insurance policy and receiving such a compensation.
    My mom took an insurance policy for her car, and, in need of money, she secretly blew it up, blaming the event on the gas leak at the gas station. Then she received compensation from the insurance company for the damage. Therefore, she committed insurance fraud.