Swoop and squat. Drive down. Imaginary accidents. These are just some of the car insurance scams that criminals commit to rip off insurers and truthful Canadians. As Fraud Prevention Month rolls out across the country in March, Insurance coverage Bureau of Canada (IBC) urges the public to assist crack down on “the staged vehicle accident enterprise” by reporting suspected insurance fraud.
All Canadians pay out for car insurance fraud. In Ontario alone, this kind of fraud adds an estimated $ 1.6 billion a yr to insurance coverage premiums and overall health care, emergency services, and court costs. Insurance criminals get income proper out of our pockets – when they cheat, we all pay out.
“Automobile insurance coverage fraud is expensive, threatens the safety and safety of drivers, cheats honest policyholders, and erodes self confidence in the insurance coverage business,” says Rick Dubin, IBC’;s vice-president of investigative companies. “Car insurance fraud is frequently the operate of organized groups who steal automobiles for sale to unsuspecting buyers or stage collisions and then file fraudulent damage claims. Or it is the work of unscrupulous automobile entire body outlets that intentionally cause extra damage to vehicles they are repairing or the perform of medical clinics that bill insurers for solutions that were by no means rendered. But fraud also consists of otherwise law-abiding citizens who pad a respectable claim,” he adds.
Dubin heads up IBC’;s nationwide investigative team that focuses on organized crime rings, particularly these concerned in auto theft or fraudulent damage and accident advantage claims. IBC also partners with law enforcement, government agencies, and insurance organizations across the country to identify, investigate, and prosecute suspected insurance crime to deliver criminals to justice.
Acknowledge fraud – observe for:
1. Staged collisions: A driver intentionally brings about a collision by targeting an innocent driver, then tends to make it search as if the innocent driver is at fault for the collision. The very first driver then files false auto insurance coverage claims to acquire generous accident rewards. Click on the link for examples of staged collisions: http://getintheknow.ibc.ca/Weblog/2013/March-2013/Staged-Collisions-types-and-guidelines.aspx
2. Unscrupulous automobile restore retailers: This crime includes a repair store intentionally leading to injury to a vehicle that has been in an accident.
3. False medical claims: In this scam, health-related clinics request claimants to indicator blank accident benefit types (i.e., evaluation and treatment ideas). The clinics then forge the signatures of genuine medical practitioners, include false details about the claimant’;s therapy and bill insurers for providers by no means rendered.
4. Dishonest folks: These people adjust the car identification variety (VIN) on a vehicle that has been stolen or previously damaged to hide its background, then privately sell the car to an unsuspecting purchaser. A single way to safeguard yourself is to get a background on the automobile Identification quantity via Carfax or Carproof as nicely as obtaining it inspected by a very good mechanic. IBC suggests getting a vehicle from a reputable dealership.
5. Fake car theft: An person arranges for his or her automobile to be stolen, then tends to make a claim for the stolen car.
6. Padding claims: This occurs when a normally law-abiding man or woman sees an possibility to make a number of extra dollars by exaggerating injuries as portion of an otherwise legitimate insurance coverage declare.
Safeguard oneself. To steer clear of a staged collision:
* In no way tailgate allow ample time to quit if the driver ahead of you all of a sudden jams on its brakes.
* Seem past the vehicle in front of you whilst driving. Apply your brakes if you see visitors slowing.
If you are concerned in a collision:
* Immediately report it to your insurance coverage representative, who will be in a position to suggest a dependable automobile entire body restore facility that will offer top quality repairs.
* If you suspect the collision may possibly have been staged, right away report the incident to the police and your insurance company. You need to also call IBC’;s toll-free of charge Tips Line at one-877-IBC-Guidelines.
If you go to a medical clinic for treatment method soon after a collision:
* Never indicator blank kinds.
Report exaggerated claims, staged auto collisions, and other crimes associated to insurance by calling IBC’;s anonymous, toll-free Tips Line at 1-877-IBC-Tips (422-8477) or submit a tip at www.ibc.ca<http://www.ibc.ca/> underneath Report Insurance Crime. IBC investigators take all suggestions critically, no matter how massive or tiny.