March was Fraud Prevention month and at Insurance Bureau of
Canada, we want to remind you that when someone cheats, everyone pays.When you buy insurance for your home, car or business, you
put your money into a pool with many others to help the few every year
who suffer financial hardship because of tragedy, such as fire or a car
crash.
But what happens when criminals or cheaters take more than their share? Or even fake the whole event? We’re all forced to pay more. It isn’t fair – but it’s a reality.
Insurance Bureau of Canada (IBC), in partnership with member insurers, works to investigate and identify suspected fraudsters. Just this year, the leader of a crime ring that staged a dozen collisions and defrauded insurance companies of approximately $1.5 million pled guilty in a Toronto court. A collaborative effort between IBC, insurance companies, police and dedicated prosecutors connected the dots allegedly linking body shops, towing companies and medical and rehabilitation clinics operating this scam.
While organized crime gets the press, many other forms of insurance fraud happen on a smaller scale but still add up to millions of dollars. Because insurance is paying, in these schemes often shady medical facilities bill for services never provided to a collision victim, or a contractor might pad a repair estimate for property damage. The person making the claim may not even recognize that he or she is part of a scam. But they are.
And then there’s the smallest – and most pervasive - insurance crime of all. Your neighbour’s garage gets broken into and he starts bemoaning the loss of his high-end tools although you could have sworn the drill you borrowed was the cheapest on the market. Lying on an insurance claim may not seem as bad as staging a collision or over-billing but it’s all insurance fraud. And it costs everyone money.
You can reduce fraud by being vigilant and willing to speak up. If you’re in a collision, be aware that everyone involved may not be above board. And if you suspect fraud, call IBC’s tip line at 1-877-422-8477 (it’s anonymous) or submit a confidential tip on line. After all, fraudsters are stealing from the same pool that contains your hard-earned cash.
Some important things to remember. It’s a crime to:
But what happens when criminals or cheaters take more than their share? Or even fake the whole event? We’re all forced to pay more. It isn’t fair – but it’s a reality.
Insurance Bureau of Canada (IBC), in partnership with member insurers, works to investigate and identify suspected fraudsters. Just this year, the leader of a crime ring that staged a dozen collisions and defrauded insurance companies of approximately $1.5 million pled guilty in a Toronto court. A collaborative effort between IBC, insurance companies, police and dedicated prosecutors connected the dots allegedly linking body shops, towing companies and medical and rehabilitation clinics operating this scam.
While organized crime gets the press, many other forms of insurance fraud happen on a smaller scale but still add up to millions of dollars. Because insurance is paying, in these schemes often shady medical facilities bill for services never provided to a collision victim, or a contractor might pad a repair estimate for property damage. The person making the claim may not even recognize that he or she is part of a scam. But they are.
And then there’s the smallest – and most pervasive - insurance crime of all. Your neighbour’s garage gets broken into and he starts bemoaning the loss of his high-end tools although you could have sworn the drill you borrowed was the cheapest on the market. Lying on an insurance claim may not seem as bad as staging a collision or over-billing but it’s all insurance fraud. And it costs everyone money.
You can reduce fraud by being vigilant and willing to speak up. If you’re in a collision, be aware that everyone involved may not be above board. And if you suspect fraud, call IBC’s tip line at 1-877-422-8477 (it’s anonymous) or submit a confidential tip on line. After all, fraudsters are stealing from the same pool that contains your hard-earned cash.
Some important things to remember. It’s a crime to:
- Make a claim for items not stolen or for items of higher value than those stolen.
- Include pre-collision damage in a claim.
- Exaggerate injuries to collect benefits.
- Make a claim for an event that never happened.
- Offer or accept “free” treatment for an injury unrelated to a collision.
- Charge an insurer for treatments that never happened.
- Encourage anyone to participate in insurance fraud.
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