Everyone Pays with Insurance Fraud
Report Insurance Fraud – Call Crime Stoppers at 1 800 222 TIPS
March is fraud awareness month, and that includes insurance fraud. Fraud is a serious business in Canada – estimated at $3 billion annually, a cost resulting in a 10 to 15% of insurance premiums used to cover the cost of insurance fraud. With the rising cost of insurance facing us all today, insurance fraud is an area we can all help prevent.
What kind of insurance crime is out there? Canadian Insurance Top Broker summarizes the five most common types of insurance fraud in this article. Most of us are aware of the larger scams out there, like this example publicized in the Toronto Star in 2010. There are far too many examples of scams on a widespread scale, with legions of groups involved. But what about the smaller scale scams?
A growing area of fraud insurance companies are seeing is address manipulation. This occurs when the insured provides incorrect information as to where they live, drive, and/or stored in (such as using your cottage address as your full time address) to save on premium. This is fraud, and insurance companies have begun to seriously clamp down on any situations where address fraud is suspected.
Many companies will cancel the policy if it is found to be fraudulent at any time, including if a claim has occurred.
Address manipulation is a serious allegation. If you have questions about this, please speak with your broker.
If you suspect Insurance Fraud
Do something! The Insurance Bureau of Canada has made it very easy to report insurance fraud. To visit their website, please click here. You can report insurance crime anonomyously at the IBC’s website here.
Warning – be wary of insurance broker scams
Cornerstone Insurance Brokers is a full line insurance brokerage with offices in Woodbridge/Vaughan, Markham, and Barrie. Cornerstone provides car, home, motorcycle, farm, equine, rural, business, life, and health insurance, as well as employee group benefits all over Ontario.