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insurance fraud (countable and uncountable, plural insurance frauds)

  1. (law) Receiving insurance policy-based compensation by intentionally causing an event due to which the claim for the compensation for insured property becomes seemingly lawful, and by concealing the intention.
    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.