State Farm launches $11 million insurance fraud suit against Toronto health centre

Assessment Direct Inc. and four individuals named in suit

State Farm Canada is suing a Toronto health assessment centre for insurance fraud.

State Farm filed a lawsuit against Assessment Direct Inc., a North York-based health assessment centre, and four individuals for more than $11 million.

Read: Ontario government to introduce new auto insurance fraud reforms

The suit alleges that Assessment Direct submitted false and fraudulent medical treatment plans to the insurer.

In its Statement of Claim filed with the Ontario Superior Court of Justice on February 12, State Farm alleges that Assessment Direct filed documentation that was signed by doctors who never actually worked at the health centre.

Read: Top 5 auto insurance fraud stories of 2012

The clinic also allegedly submitted documentation that “misrepresented the qualifications of the health professionals that purportedly completed the documentation.”

State Farm says it approved many of the health assessment treatment plans, “paying approximately $1.4 million, known to date, for services and assistive devices which were not recommended and/or provided by the health professional who allegedly signed the documentation.”

State Farm is suing for $3 million in damages for fraud, $3 million for damages for conspiracy and $5 million in aggravated and/or punitive damages.

This is the fourth suit State Farm has filed related to insurance fraud since 2010.

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Transcontinental Media G.P.