March 4, 2019 (TORONTO) – Insurance crime costs us all, and there’s no better time to learn about the risks it poses than during Fraud Prevention Month. This month, Insurance Bureau of Canada (IBC) is highlighting ways to help everyone limit the personal and financial costs of auto insurance fraud.
“There are human and financial costs to insurance-related crimes, and these have a ripple effect,” said Henry Tso, IBC’s Vice-President of Investigative Services. “For example, insurance crimes such as fake accidents and falsifying insurance claims not only affect the unsuspecting victims of the collision, but also affect the general public by needlessly using up valuable law enforcement, court and health care resources that could be better used elsewhere.”
This translates into all Canadians paying a price in the forms of higher taxes and significantly higher insurance costs. “If someone tries to tell you that insurance fraud is a victimless crime, ask that person, ‘Who pays for the police investigation? Who foots the extra legal bills when an insurance fraud case clogs up the courts?’” added Tso.
IBC’s “Because of Fraud” chart, below, shows the effects of fraud on our society.
"Insurance crime affects every one of us," said Tso. "The bottom line is, when they cheat, we all pay." To raise awareness and coordinate efforts to fight insurance crime, IBC and its member property and casualty insurers work with law enforcement agencies, all levels of government, insurance brokers' organizations and other stakeholders across Canada.
Go to IBC.ca for tips for consumers to help protect themselves from becoming victims of insurance crime. If you think you may have witnessed or been the victim of an insurance-related crime, call IBC's confidential TIPS Line (open 24 hours a day, seven days a week) at 1-877-IBC-TIPS, or submit an anonymous online tip to IBC.