Ontario's Government Puts Insurance Fraud in its Sights

March 10, 2016, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

Minister of Finance George Sousa released the Ontario budget recently and in it he included the intention to establish a serious fraud office focussing on car insurance claims. Insurance fraud is a growing problem and it has been receiving a lot of attention lately in the media. As the injured persons are subject to more and more scrutiny by insurers before benefits are fully paid the question of fraud becomes even more relevant.

Insurance fraud has entered a whole new level of sophistication in the province. Where once the fraud consisted of the exaggeration of claims of auto damage, or falsified damage, we now see ‘integrated’ models of fraud involving several cars, tow truck companies, repair shops, and doctor/physiotherapy clinics all involved in maximizing payouts. Each party takes a cut of the claim leaving us to pay it through our increased premiums and decreased accident benefits. There are even suggestions that in some cases police officers and insurance adjusters have been involved in suspicious activity.

According to Kim Donaldson, VP of the IBC,

“Auto insurance fraud continues to be a serious problem and has plagued the Ontario auto insurance system costing as much as $1.6 Billion a year”. 

Many commercial drivers have begun to ‘fight’ back using dash cams to record all driving activity including accidents. The use of dash cams has become increasingly popular in Canada with the medium to high end models recording sound and having GPS capabilities. In the event of a collision the footage can be valuable, particularly in a ‘he said-she said accident’.

There are certain red flags that you should consider anytime you are involved in a car accident.

1. Being pressured to settle the damage amount privately, not through insurance.
2. A general sense that the other person/people are evasive or lying. Trust your instincts.
3. An unwillingness to provide accurate information.
4. Being threatened or verbally abused by the other party.  If you are in an accident and feel threatened or feel something isn’t right you should call 911 immediately and get into your car if it is safe to do so.
5. Note the behavior of the other people. Were you in a fender bender but all the other people are complaining of severe injury?
6. Are the other people reluctant to have police attend the scene?

When you are in an accident make note of all the details that you can. If you are injured have someone else gather the information for you. Take lots of pictures with your phone. Take pictures of the other driver’s licence and insurance. Get the details of all witnesses. Call the police if the damage is any more than minor. Make special note of passengers in the other car, how many are there and who they are – people committing fraud often ‘add’ passengers to the car when making a claim. If you or someone else is seriously injured you should dial 911 immediately and seek aid.

Most of us will be involved in at least one accident in our lifetime. The Waterloo Regional Police have a nice section of their website outlining car accidents.

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

The opinions expressed here, while intended to provide useful information, should not be interpreted as legal recommendations or advice.