Allstate files two lawsuits against GTA medical clinics

Lawsuits allege three clinics filed fraudulent claims

Allstate Canada Group has filed two lawsuits against the owners of three medical clinics in the Greater Toronto Area, for damages and punitive damages relating to fraudulent claims.

The first lawsuit is filed against Assessment Direct Inc., and the second is against Fairview Assessment Centre and Pacific Assessment Centre.

Read: Police arrest 46 in insurance fraud ring

These lawsuits allege the clinics submitted false or unauthorized claims for health care services never provided. They further allege that several doctors were also being taken advantage of as they didn’t write or approve forms filed in several claims generated at these clinics. The suits allege the doctors’ names were fraudulently used on forms, and that most of them were never even employed at the clinics where these claims were filed.

“These criminals went to great lengths to defraud our industry and Canadians everywhere. Putting a stop to their activities means better services for customers who actually need it,” said Kevin McConkey of Allstate Canada, in a statement.

Read: 2012 Ontario budget focuses on fraud

A recent study conducted by KPMG has estimated that the cost of insurance fraud in Ontario is upwards of $1.6 billion.

“Fraud costs everyone because insurance premiums are driven by claims costs,” says McConkey.

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