Frédérique De Simone
18 March 2019 13:30
Photo : Freepik
A hidden camera investigation conducted by Desjardins Insurance and Aviva Canada has helped to shed light on the sale of motor insurance policies to be fraudulent and identify the professionals of this industry boom.
The investigation reveals that the professionals of this fraud prey on drivers who do not suspect anything, promising them a car insurance at a good price. Fraudsters reproduce the certificates of insurance for automobile liability, so-called ” pink card “. They then sell the counterfeit cards to unsuspecting consumers on online shopping sites such as Kijiji and Craigslist. Most policyholders do not realize the scam that at the time of the claim.
The case Aly
In 2018, Desjardins Insurance has been made aware of allegations of fraudulent activities committed by Sherif Aly, a resident of ontario who is not authorized to sell automobile insurance. Desjardins has, subsequently, requested the collaboration of Aviva Canada, for a joint investigation novel. At the same time, in October 2018, a different survey sees the light of day, this time, led by the Ontario provincial Police (OPP).
The survey of insurers is triggered when the OPP catches a driver for a traffic offence that is unrelated to the allegations in question. The police realize that the man was driving without valid insurance, and that its pink cards were fraudulent. The two surveys point to Mr. Aly and reveal that it was selling insurance without a license, while handing over to the clients contracts in exchange for cash.
“This is the worst category of insurance fraud, because it leaves victims without protection and subject to financial charges are considerable — just the opposite of what an insurance policy is supposed to bring,” said Colm Holmes, president and chief executive officer of Aviva Canada.
Mr. Aly has been arrested on 9 February 2019. He faces two counts of fraud under $ 5,000, falsification of books and documents, and of fraudulent intention. The charges are the result of a police investigation in ontario involving the driver of Port Credit without the appropriate insurance, and the first victim alleged, including making contact with Desjardins has resulted in the joint investigation.
The scourge of canadian
Aviva Canada revealed in its report 2018 on the fraud as ” fraud in motor insurance costs Canadians more than $ 2 billion per year, and what are the drivers honest people who pay for the minority who do not “.
The fake insurance salespersons are not the only ones responsible for this scourge. Scams in connection with the towing or car repairs are an important part of the cake. Just as the runaways tariff, a staged collision, theft fictional and the health care providers, and legal services that are voluntarily lie the insured to be eligible for a share of the winnings.
In 2016, Aviva Canada has launched the project Duffy, a survey under the cover which has exposed the fraudulent activities committed by health care providers, and legal services. The professionals explained to policyholders how to exaggerate their injuries on their claim to receive accident benefits for which they reserved a portion for themselves as payment for their services. It also happens that patients are required to sign an application form, care blank that fraudsters use to obtain payment for services never rendered, reveals Aviva.
Ontario in the heart of the problem
A survey conducted in 2018 by the firm Pollara found that most Ontarians are on the scent of the plague that still exists in their corner of the world. Half of them believe that a compensation claim on four is a fraud. Nearly three in four (73 %) believe that a crackdown on auto insurance fraud will result in a reduction in their insurance premium.
Ontario is one of the provinces where auto insurance is most expensive. It will cost near 1 $ 430 in average for insured persons, according to the Groupement des assureurs automobile. The sale and the establishment of policies of auto insurance fraudulent contribute greatly to the increase in the cost of the insurance.