Insurance fraud happens when an individual or a group of persons make an insurance claim that is not true or files a claim for more than the value of the goods that was actually lost, stolen or destroyed. Fraudulent claims affect the cost of everyone’s insurance. The Canadian Coalition Against Insurance Fraud has an estimate that $1.3 billion worth of insurance claims which are paid in Canada every year are fraudulent. This works out to ten-fifteen percent of every dollar you pay for insurance.
If someone you know is committing insurance fraud on a home, car or business policy, you can report it to Crime Stoppers or insurance fraud investigators. Crime Stoppers is an international non- profit civilian program that assists police in solving crimes through tips reported by ordinary citizens who have knowledge or suspicion that crime or insurance fraud cases have taken place. If your tip helps the police or an insurance company or insurance fraud investigator catch an insurance fraud, you may be eligible for a cash reward. Your call will remain completely anonymous.
The Insurance Brokers Association of Ontario has supported Crime Stoppers and insurance fraud lawyer for many years.
An innovative alliance between Crime Stoppers and the Canadian Coalition Against Insurance Fraud, which began in Ontario in 1995, to report insurance fraud tips has resulted in 51 arrests, 49 denied claims and has prevented the payment of more than $1.2 million worth of fraudulent home, car and business insurance claims across Canada in the past 5 years.
“The message of the Crime Stoppers program is They Cheat /You Pay,” said Maid Mary Lou O’Reilly, Executive Director of the Coalition. “With the level of support we’ve seen for our partnership with Crime Stoppers, we know that Canadians understand this message and they no longer turn the other way when a neighbour brags about ‘ripping off the insurance company.’ They know what it’s costing all of us.”
It is important for everyone to help prevent insurance fraud and in doing so, help reduce the premiums we pay.
In the advent of Credit Card Fraud, here are a few things you can do to prevent the crime.
- think of credit cards as cash
- never leave your cards unattended
- always know the location of your cards
- destroy expired cards
- sign the back of any new cards immediately
- report lost or stolen cards immediately
- protect your PIN – memorize it and do not write it down
- be careful how, when and to whom you give your card number and related information
- destroy personal financial information – don’t just throw it away
- if you are not going to be using your cards for an extended period of time lock them away in a safe place
- always verify your account statement and report any discrepancies immediately
- make certain you get your card back after every transaction
- keep your card in plain view when making a transaction
- make certain that if you are being sent out a new card that it arrives within a few days of the date promised
- take extra care if you have cards with large credit limits