The article discusses the need for improved regulations to address soft insurance fraud, which includes false claims, overcharging, and exaggerating damages. The study highlights the prevalence of motor insurance fraud and the limitations in the current procedures for dealing with such fraud. It suggests that the Anti-Insurance Fraud Legislation should be revised to focus more on soft insurance fraud, particularly in the motor insurance sector. The paper also emphasizes the importance of strengthening the responsibility of insurance companies in preventing fraudulent activities and enhancing the investigation capabilities of specialized units within these companies. Additionally, it recommends utilizing a reporting center for insurance fraud and expanding the investigative efforts of regulatory authorities to combat insurance fraud effectively.