Auto insurance fraud: A potentially dangerous and expensive problem

Dear Editor,

Recently, Ontarians learned that a 23-year veteran of Peel Regional Police was sentenced to five years in jail for defrauding insurance companies of almost $1 million. Constable Carlton Watson was found guilty of accepting a fee to create several motor vehicle accident reports for collisions that never happened that resulted in fraudulent physical damage and injury claims being paid out by insurers.

Also, we learned of three insurance fraud cases an insurer had been working on. In these cases, a chiropractor, a body shop owner and an individual were all charged in connection with defrauding the insurance system.

We also should not forget the case where a man in the Greater Toronto Area was charged for selling false insurance pink slips out of a local coffee shop. Drivers who had purchased these fraudulent pink slips were unknowingly operating their vehicles without insurance.

These are just a few examples of cases where fraudsters have not only siphoned money away from insurance companies and, in turn, consumers, but through staged collisions have also put the safety of those who use the roads in jeopardy. There are a multitude of other similar cases that are currently under investigation and there are likely hundreds more that remain, unfortunately, under the radar.

On behalf of consumers, Insurance Bureau of Canada (IBC) and insurance companies continue to work with law enforcement in the fight against auto insurance fraud. However, one thing remains certain: insurance fraud in Ontario is a multi-million dollar business and each and every instance of fraud leads to honest consumers paying considerably more than they should for insurance.

Rick Dubin

Vice-President, Investigative Services, Insurance Bureau of Canada