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Filing A False Workers Compensation Claim in California

By August 27, 2013June 8th, 2020Insurance

Did you know that filing a false workers compensation claim can get you a free ticket directly to jail? File a false claim, go to jail. Think about it. Is it worth it?

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The penalties in California are serious. Senate Bill 1218 made Worker’s Compensation fraud a felony, and requires insurers to report suspected fraud. In addition, You can be fined up to $150,000 or double the value of the fraud which ever is greater and be sentenced to a prison term between 5 to 30 years.

Worker’s Compensation fraud can be as simple as a delay in returning to work (malingering), faking an injury, inflating the extent of injuries. It can also involve white-collar criminals including doctors and lawyers that entice, pay or conspire with others in cheating the system through fraudulent activity leaving the insurance companies and ultimately business owners, taxpayers and the general public to pick up the tab.

If you suspect someone of filing a fraudulent claim notify your employer or your insurance carrier. Workers Compensation fraud costs businesses and fellow employees millions of dollars each year! Fraud costs your employer more on their workers compensation insurance premiums. That is money that could be put to better use such as more jobs, increase pay or better benefits. Think about it!

Many consumers and business owners feel the state is not tough enough on fraud and additional systems should be put in place to track suspects and their claims history, unethical attorneys and doctors that encourage fraudulent behavior. We recommend contacting your state representative and encouraging them to draft stronger legislation against fraud .