Traffic stops uncovering fraudulent insurance documents
Thursday, August 30, 2012 Admin
The Ontario Provincial Police Barrie Detachment has seen an increase in fraudulent insurance documents produced during routine traffic stops. The OPP reminds citizens to exercise caution when purchasing auto insurance, and to ensure that they are buying from a reputable broker and company. Unsuspecting consumers are being targeted by fake insurance companies selling auto insurance in Ontario.
According to the recent study conducted by KPMG, auto insurance fraud is conservatively estimated to cost Ontario drivers between $770 million and $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, of the Insurance Bureau of Canada. “Check the person through the Registered Insurance Brokers of Ontario. If it sounds too good to be true, stay clear.”
Anyone who has been offered, or has purchased, a fraudulent auto insurance policy, is urged to take action immediately. Contact the insurance company that is set out in the policy. Do not contact the broker or agent named in that policy. A firsttime conviction of producing fraudulent insurance can cost between $5,000 and $25,000. A subsequent conviction may cost $10,000 to $50,000, while the driver could have their licence suspended for up to a year.
For more information on insurance fraud, contact the Insurance Bureau of Canada’s TIPS Line at 1- 877-IBC-TIPS, or the Canadian Anti-Fraud Call Centre at 1-888-495-8501. Anyone with information about a person selling fake insurance can contact the Barrie OPP at 1-888-310-1122.