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Industry associations are launching initiatives against insurance fraud


Andrea Lubeck

5 March 2019 13:30

Photo : Freepik

March is the Month of the prevention of fraud. For the occasion, industry associations like the insurance Bureau of Canada (IBC) and thecanadian Association of insurance companies of persons (CLHIA) are launching initiatives to reduce and prevent the scourge.

“The crimes related to insurance lead costs, both human and financial, which have a cascading effect. For example, crime insurance, such as fake accidents, affecting not only the innocent victims of the collision, but also the general public in using unnecessarily the resources of the police, justice and health system that could be better used elsewhere, ” explains Henry Tso, vice-chairman of the investigative service of the TRAY.

The BAC has decided to put light on the various actors from outside the industry who are affected by insurance fraud. It identifies three, and details the practical effects which result from the fraud.

Whether it’s the police, the health system or the criminal and civil consequences can be summarized to a decrease of resources to help in urgent cases, the time spent on cases of fraudulent to a time-limit for persons in need of the professionals concerned and additional costs resulting from either increases in taxes or cuts to services for families.

The organized crime involved in the fraud collective

For its part, the CLHIA has chosen to focus on the fraud in group insurance with its awareness-raising campaign fraud = fraud. In its press release, the association recalls that fraudulent claims in health insurance and dental care cost “hundreds of millions of dollars” to the insurers. Its impacts include increases in premiums for all Canadians, and “significant impact” on the criminal plan.

“Our research shows that the fraud in group insurance is growing, due in part to a large number of people do not understand that it is, indeed, a crime, note Stephen Frank, president and chief executive officer of the CPOMA. Most people believe that if they are caught, they will only have to repay the sums in question. In reality, they could lose their jobs and, in some cases, have a criminal record and even go to jail. “

The CLHIA argues that if the fraud is sometimes a mistake of the person, more it is the fact ” of organized crime and / or suppliers of services without scruples “. “In cases of fraud in large-scale, sometimes companies have to lay off a large number of employees, which can impact strong negative on them. This is one of the reasons why we believe that the campaign fraud = fraud is necessary and timely, ” adds Mr. Frank.

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