State Farm files lawsuit against several Toronto medical clinics

The company is seeking more than $21 million in damages.

State Farm’s latest lawsuit is against several Toronto medical clinics for filing fraudulent insurance claims. The case is currently before the courts and the company is seeking more than $21 million in damages.

“Auto insurance fraud, specifically accident benefit fraud, continues to be a serious industry and consumer problem in Ontario,” said John Bordignon, media relations at State Farm Canada. “This is not a victimless crime; it’s a crime we all pay for. Honest insurance customers should not have to pay because of those who cheat the system.”

An official Statement of Claim was filed November 4, 2011 against Pacific Assessment Centre Inc., Fairview Assessment Centre, M.D. Assessment Consult Inc., Traffic Law Advocate Professional Corporation, Vitali Tourkov, Alexandre Lobatch, Abram Zilber, Danny Grossi, Evgeni Evdassin, Yaniv Tamsout, Alla Lobatch and Dan Sut.

State Farm is claiming $8 million in damages for fraud, fraudulent misrepresentation, and/or unjust enrichment; $8 million in damages for conspiracy; $5 million in aggravated and/or punitive damages; a declaration that State Farm is not required to pay any future or outstanding bills from the defendants; the costs of the action; pre-judgment and post-judgment interest; and HST.

Bordignon told Canadian Insurance Top Broker that the company would continue to take a proactive approach to fighting fraudulent claims activity. State Farm has increased its efforts internally, and introduced additional dedicated resources.

“We want to send a message to those engaged in insurance fraud that we will take appropriate action against those who are or continue to engage in this criminal activity,” he said.

According to Bordignon, there has been progress in the fight against insurance fraud since the Ontario government’s mandated auto insurance reforms were implemented in September 2010.

“The provincial anti-fraud task force will shed more light on this issue and craft positive recommendations to combat it,” he said. “State Farm is committed to working with our industry partners, regulators and the government to reduce the impact insurance fraud has on consumers.”

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