What happens to an insured’s claim when sufficient evidence of fraud is found?

When sufficient evidence of fraud is found in an insured's claim, the claim will typically be forfeited. This means that the insurance company will deny the claim based on the fraudulent activity discovered. Insurance fraud undermines the principles of insurance, as it involves deceit intended to obtain an undeserved benefit or payout from the insurer. As a result, when fraud is proven, the insurer has legal grounds to reject the claim entirely, as it violates the terms of the insurance policy and can also lead to further investigations or legal actions against the insured. This action protects the insurer and helps to preserve the integrity of the insurance system by discouraging fraudulent activities.