March is Fraud Prevention Month
Claims which are proven to be fraudulent, not only will be denied, but their overall cost to Canadians is over $3 billion annually. Up to 15% of your policy premium is used to cover the cost of fraudulent claims. In addition to this, if you are caught committing or attempting to commit fraud, your policy may be cancelled outright, and you may pay higher premiums or be denied insurance in the future. The offense is punishable on conviction, by a maximum of 10 years imprisonment for cases involving an amount over $5000, or otherwise a maximum of 2 years imprisonment..
Common types of fraud or attempted fraud include: lying about the way a loss occurred, adding items or inflating the value of items in a claim, filing fraudulent automobile accident or damage claims, withholding information about past accidents, traffic convictions, claims, policy cancellations or non-renewals, and receiving payments for treatments not received.
You may unwittingly be the victim of a fraud through no fault of your own. Make sure you deal with reputable tow truck drivers, healthcare providers, etc. If someone you know is committing insurance fraud on a home, car, or business policy, you can report it to Crime Stoppers at 1-800-222-TIPS.