Liability Insurance Australia :: News
SHARE

Share this news item!

Jail Time for Gym Owner Who Masterminded an Unusual Scam

Jail Time for Gym Owner Who Masterminded an Unusual Scam

Jail Time for Gym Owner Who Masterminded an Unusual Scam?w=400

⚠️The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

An extraordinary case of insurance fraud has landed a Perth gym owner behind bars.
Karen Salkilld, who concocted a plan to fake her own death and scam an insurance company out of over $700,000, has been sentenced to three years in prison.

This month, Salkilld admitted guilt to charges of defrauding TAL, a major insurance firm. She submitted a fraudulent claim on February 7 through InsuranceLine, a TAL affiliate. The insurance policy had named a past romantic partner as the beneficiary.

The two were in a committed relationship for several years before parting ways last year. It's important to note that her former partner had no knowledge of or involvement in the fraudulent activity.

Salkilld had access to personal identification of her ex-partner, including a passport, using these details to execute her scheme. She asserted in her claim that she had died in an auto collision in Broome, WA, in December of the previous year.

To support her fabrication, she doctored a death certificate, coroner's court document, and an investigation record regarding the alleged demise.

In a meticulous move, she set up a financial account using her ex-partner's name at MyState Bank Tasmania, further posing as the ex-partner in the email exchange with the bank. The fraudulent insurance payment amounting to $718,963 was wired into this account on February 14. Salkilld then funneled this money to cover debts tied to her enterprises.

Her ruse unraveled when MyState Bank Tasmania flagged certain transactions as suspicious, prompting further scrutiny.

The court, quoting Judge Vicki Stewart, concluded, “The conclusion that your offending was motivated by greed is unavoidable.” She further added, “You were living beyond your means and overcommitted yourself. As the state prosecutor said...this money comes from a pool. Insurance premiums go up for everybody, and in that sense, it really is an offence against the community.” A restitution directive was issued, calling for the seized funds to be remitted to TAL.

The significant impact of such fraudulent actions on community insurance rates highlights the broader consequences of financial crimes. Salkilld's case reminds us of the integrity expectations placed on individuals within the financial ecosystem.

The coverage and statements related to this case have been adapted from details reported by Insurance News Magazine.

Published:Thursday, 31st Oct 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Artificial Intelligence: The Foremost Risk for Australian Enterprises
Artificial Intelligence: The Foremost Risk for Australian Enterprises
22 Jan 2026: Paige Estritori
In a significant shift within the Australian business landscape, artificial intelligence (AI) has ascended to the top of the risk agenda for local enterprises. According to Allianz's annual global risk survey, 61% of Australian executives now identify AI as their primary concern, marking the first instance where this technology has led the risk list in Australia. This represents a substantial leap from its eighth-place ranking in the previous year. - read more
ASIC's 2026 Enforcement Agenda: Implications for the Insurance Industry
ASIC's 2026 Enforcement Agenda: Implications for the Insurance Industry
22 Jan 2026: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has unveiled its enforcement priorities for 2026, placing a significant emphasis on the insurance sector. Key areas of focus include failures in insurance claims and complaints handling, as well as misleading pricing practices that may impact Australians' cost of living. - read more
Australian Insurers Achieve Robust Profits in Q3 2025
Australian Insurers Achieve Robust Profits in Q3 2025
22 Jan 2026: Paige Estritori
Australian general insurers have reported a significant after-tax profit of nearly AUD 2.3 billion for the third quarter of 2025, marking an increase from approximately AUD 2.1 billion in the same period of 2024. This uptick reflects a combination of rising premium revenues and a reduction in claims, contributing to the industry's robust financial performance. - read more
Australian Insurers Under Investigation for Premium Increases Amid Record Profits
Australian Insurers Under Investigation for Premium Increases Amid Record Profits
22 Jan 2026: Paige Estritori
In recent developments, Australian insurance companies are facing heightened scrutiny from both government officials and consumer advocacy groups due to substantial increases in insurance premiums. This comes in the wake of the industry reporting record profits, raising questions about the fairness and transparency of pricing strategies. - read more
Rising Insurance Premiums Challenge Australian Homeowners
Rising Insurance Premiums Challenge Australian Homeowners
22 Jan 2026: Paige Estritori
Australian homeowners are confronting substantial increases in home insurance premiums, driven by a combination of more frequent extreme weather events and escalating building costs. Recent data indicates that the average annual premium for new home and contents policies has risen by 14%, equating to an additional $343 per year for policyholders. - read more


Business Insurance Articles

Proven Strategies for Slashing Your Business Liability Insurance Costs
Proven Strategies for Slashing Your Business Liability Insurance Costs
Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - read more
Common Myths About Public Liability Insurance Debunked
Common Myths About Public Liability Insurance Debunked
Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more
How Public Liability Insurance Can Save Your Business During a Crisis
How Public Liability Insurance Can Save Your Business During a Crisis
Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more
The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need?
The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need?
As a business operating in Australia, understanding the ins and outs of public liability insurance is not just recommended, it's essential. This type of insurance serves as a safeguard, protecting your business against the financial repercussions of lawsuits and claims arising from third-party injuries or property damage due to your business operations. In a world where one unintended mishap can lead to costly legal battles, public liability insurance stands as your first line of defense. - read more
The Smart Business Approach: How to Effectively Compare Public Liability Insurance Rates
The Smart Business Approach: How to Effectively Compare Public Liability Insurance Rates
Running a business comes with inherent financial risks. Whether you own a small café or a large construction company, unforeseen incidents can lead to significant financial losses. - read more


Start Here !
Your free liability insurance quote comparison starts here!
Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Income Insurance:
Insures your income in the event of you being unable to work due to sickness or accident.