False Friends: When Someone Asks You to Lie for Their Insurance Claim

Insurance fraud in New Zealand isn’t always committed by strangers or organised criminal groups. Sometimes, it starts in everyday conversations, when a friend or whānau member asks you to help “smooth things over” with their insurance claim. These requests can feel personal and emotionally loaded, making them difficult to refuse. But agreeing to help can put you at serious legal risk.

You might be asked to confirm details that aren’t true, back up a story you know is inaccurate, or leave out information that could affect a claim. Even if you don’t benefit financially, providing false or misleading information can still be considered committing insurance fraud. In New Zealand, knowingly supporting a false claim is treated seriously under the law.

Insurance fraud includes more than making a dishonest claim yourself. It can involve giving false statements, signing declarations you know are incorrect, or verbally confirming events that didn’t happen. If the information you provide is used to support a claim, you may be held accountable for your role in it. Many people don’t realise that “helping out” can carry the same consequences as making a fraudulent claim directly.

The consequences of insurance fraud can be significant. They may include police investigation, prosecution, fines, or imprisonment. There can also be long-term impacts, such as difficulty obtaining insurance in the future or being recorded in fraud databases used across the insurance industry. Beyond the personal risks, fraud contributes to higher cost of claims, which ultimately increases the cost of insurance for everyone.

People who ask others to lie for their insurance claim are often under pressure. Financial stress, mechanical issues, or fear that a claim will be declined can lead people to make poor decisions. While these pressures are real, they don’t make fraud legal or reduce the consequences. Insurers are experienced in identifying inconsistencies, and what seems like a small favour can quickly unravel under investigation.

If you find yourself in this situation, you don’t need to argue or explain in detail. A simple, clear refusal is enough. Saying you’re not comfortable providing information that isn’t true, or that you don’t want to be involved in insurance matters, is a reasonable and responsible response. Protecting yourself is not disloyal, it’s sensible.

If you’re concerned about a claim, or you’ve been asked to provide false information, you can make an insurance fraud report confidentially. The Insurance Fraud Bureau provides a secure and anonymous way to report insurance fraud. You can share what you know without fear of repercussions, and you don’t need proof to raise a concern. If you’d like to read more about this process, we’ve written this blog about how we keep your reports safe and confidential.

To report fraud or learn how to report insurance fraud, visit www.ifb.org.nz/report-fraud/. Your information helps protect the integrity of the insurance system and keeps costs fair for all New Zealanders.

Saying no to fraud protects you and helps ensure insurance remains sustainable, affordable, and trustworthy for everyone.

Frequently Asked Questions

1. Is it insurance fraud to lie for someone else’s claim?

Yes. Providing false or misleading information to support another person’s insurance claim can be considered committing insurance fraud in New Zealand, even if you don’t receive any money from the claim.

2. What should I do if someone asks me to lie for their insurance claim?

You should refuse to provide false information and avoid getting involved. If you’re concerned about the claim or feel pressured, you can make a confidential insurance fraud report to the Insurance IFB.

3. How do I report insurance fraud in New Zealand?

You can report insurance fraud online through the Insurance Fraud Bureau NZ. Reports can be made confidentially or anonymously at https://ifb.org.nz/report-fraud/