Police warn insurance fraud is on the rise

Caledon OPP reports to seeing an increase in fraudulent insurance documents produced during routine traffic stops.

Police are reminding people to be careful when purchasing auto insurance and to make sure that they are buying insurance from a reputable broker and insurance company. Unsuspecting consumers are being targeted by fake insurance companies selling auto insurance in Ontario.

Insurance crime is not victimless. According to the recent study conducted by KPMG and forwarded to the Ontario government, auto insurance fraud is conservatively estimated to cost Ontario drivers between $770 million to $1.6 billion per year.

“Do not buy insurance from any person at a coffee shop or on-line, unless they prove to be a reputable broker,” Richard Dubin, vice-president with Investigative Services for the Insurance Bureau of Canada, warned, adding thy should check the person through Registered Insurance Brokers of Ontario (RIBO). “If it sounds too good to be true, stay clear.”

People who suspect they may have been offered or have bought a fraudulent auto insurance policy should take action immediately to confirm whether or not they have coverage. Contact the insurance company that is set out in the policy. Do not contact the broker or agent named in that policy.

A conviction of producing fraudulent insurance can cost, on a first conviction, a fine of not less than $5,000 and not more than $25,000. A subsequent conviction is subject to a fine of not less than $10,000 and not more than $50,000. In addition, the driver’s licence may be suspended for up to one year.

People can also contact Insurance Bureau of Canada’s TIPS Line at 1-877-IBCTIPS or the Canadian Anti-Fraud Call Centre (Phonebusters) at 1-888-495- 8501. In Ontario, they may contact the Registered Insurance Brokers of Ontario at 416-365-1900 or 1-800-265-3097.

Those with information on persons selling fake insurance cards or who suspect that a driver is operating a motor vehicle with a fake insurance card is asked to contact Caledon OPP at 905-584-2241.