Insurance fraud is one of operational risk challenging almost all insurance companies. InrnEthiopian Insurance Corporation fraud has evolved over time from inflating of legitimate claimrnsubmitting fake accident report and fraud perpetrated on both claim and policy underwritingrnprocess. The objective of the study is to examine and analyze the nature and status of motorrninsurance fraud and risk management practice in Ethiopian Insurance Corporation. The studyrnwas descriptive and explanatory research design was used for the study with a target populationrnof 243 respondents and a sample size of 151. From the study findings, it was found that the typernof motor insurance fraud was claim and underwriting fraud are predominating and mainlyrnperpetrated by internal and external bodies through collusion. Additionally, most claim lodgedrnwere inflated that was caused as a result of lack of appropriate punishment to fraudsters, poorrninternal controls and greed. Moreover, the study was indicated that the companyâ€˜s strategicrnapproach to motor insurance fraud management is passive.rnThe study concluded that based on multiple regression analysis, 49.6 % variation inrnorganizational performance is explained by the employed explanatory variable i.e. preventivernfraud management practice, detective fraud management practice, and responsive fraudrnmanagement practice. However, the major proportion that is 50.4 % variation in organizationalrnperformance not explained. This indicates that additional elements, such as financial and nonfinancialrnconsiderations, were not included in the study.rnThe study achieves that preventive fraud management practice, detective fraud managementrnpractice, and responsive fraud management practice are the key factors that affect thernperformance of the company in the Ethiopian Insurance Corporation. Furthermore, the studyrnrecommends that the company should create consolidated central database of all motor policiesrnin order to identify suspected fraudulent claims