Insurance Fraud Investigations: How PIs Help Keep Claims Honest

Insurance exists to protect genuine policyholders, not to fund dishonest claims. Yet insurers in Singapore and worldwide face staged accidents, exaggerated injuries and fabricated losses every year.

Private Investigators play a quiet but important role in helping insurers and corporates verify claims and discourage fraud.

1. What is insurance fraud?

Insurance fraud occurs when a person or business deliberately misleads an insurer to gain a benefit they are not entitled to. Examples include:

• Staging or exaggerating accidents
  
• Claiming for injuries that did not occur or have fully healed
  
• Inflating the value of damaged or stolen items
  
• Misrepresenting pre-existing conditions
  
• Submitting multiple claims for the same event
  

A Private Investigator Singapore insurers work with is not there to harass genuine claimants, but to identify anomalies where the facts do not match the story.

2. Why insurers engage private investigators

Insurers receive large volumes of claims. Most are legitimate and handled through standard procedures. Investigators are usually brought in when:

• There are inconsistencies in the claimant’s statements
  
• The claimed damage does not match the incident description
  
• Witness accounts conflict or seem coordinated
  
• The claimant has a history of multiple suspicious claims
  
• There is intelligence suggesting a broader fraud network
  

At 122, we are often tasked to “pressure test” a claim by verifying whether real-world evidence supports what is being asserted.

3. How insurance investigations are conducted

Within legal limits, typical methods may include:

• Site visits to examine vehicles, premises or locations
  
• Review of photos, repair invoices and medical reports
  
• Interviews with witnesses, repairers or other parties
  
• Discreet surveillance to observe claimants’ actual activity levels
  
• Online research into claimants and associated individuals
  
• Pattern analysis to detect possible organised fraud
  

For example, if a person claims severe back injury but is consistently observed performing heavy lifting soon after, insurers may question the extent of the claimed disability.

4. Legal and ethical boundaries

Insurance investigations must comply with Singapore law and data protection regulations. This means:

• No trespassing or illegal entry
  
• No harassment or threats
  
• No unauthorised access to confidential records
  
• No misrepresentation to medical professionals or authorities
  

A reputable private detective agency will also advise insurers where a line should not be crossed. The goal is to obtain accurate evidence, not to intimidate.

5. How findings are used

Investigation results can support:

• Approving a claim with greater confidence where evidence aligns
  
• Requesting clarification or additional documentation
  
• Renegotiating the claim amount
  
• Rejecting the claim where fraud is clearly indicated
  
• Referring the matter for legal action in serious cases
  

At 122, we present our findings in a factual report that insurers, lawyers and, if necessary, the courts can understand and rely on.

Final Thoughts

Insurance fraud ultimately increases premiums for everyone. The presence of trained Private Investigators in Singapore’s insurance ecosystem signals that dishonest behaviour is likely to be detected.

For policyholders with valid claims, thorough investigations should be seen as a safeguard, not a threat. They help keep the system fair and sustainable.