Top 5 types of insurance fraud | Canadian Insurance

Top 5 types of insurance fraud

Plus: 4 tips to protect against fraud

“Take the time. Report the crime.” That’s the message to consumers from Insurance Bureau of Canada (IBC) during Fraud Prevention Month.

“Consumers can help by learning about the different types of insurance fraud and then reporting any suspicious activity,” said Rick Dubin, IBC’s vice-president of investigations, in a press release. “When someone makes a false or exaggerated claim, honest policyholders pay for it. We all have an interest in reducing insurance fraud.”

Dubin heads IBC’s national investigative team focusing on organized crime rings, specifically those involved in auto theft or fraudulent injury and accident benefit claims.

Read: Could auto insurance issue trigger Ontario election?

5 most common types of insurance fraud:

  1. Unscrupulous auto repair shops that intentionally cause additional damage to a vehicle involved in an accident or bill several different insurers for repairing the same prior damage to a vehicle;
  2. Medical clinics that ask claimants to sign blank accident benefit forms, then bill insurers for services never provided;
  3. Individuals who privately sell a stolen vehicle to an unsuspecting consumer after changing the vehicle identification number to hide its true identity;
  4. Collisions that don’t seem to make sense, where a driver intentionally causes a collision with an unsuspecting driver and makes it look as if the innocent driver is at fault for the collision; and
  5. Medical clinics that forge the signatures of legitimate medical practitioners and use their names and college registration numbers without their knowledge or consent on accident benefit forms and then bill insurers for services never provided
Read: State Farm launched $11 million suit against health centre 

“During Fraud Prevention Month IBC wants to create a greater awareness of insurance fraud and its consequences,” said Dubin. “The more people report fraud, the more fraudsters and scam artists we can bring to justice.”

Tips for protecting yourself against insurance fraud

  • Do not sign blank accident forms
  • If purchasing a vehicle privately, run a full history search on the vehicle and have a qualified mechanic review the vehicle’s condition. IBC recommends purchasing a vehicle from a reputable dealership.
  • If you’re involved in a collision, immediately report it to your insurance company, who will then be able to recommend a reliable auto body repair facility that will provide quality repairs.
  • If you suspect a collision may have been staged, immediately report the incident to the police and to your insurance company. You should also call IBC’s toll-free TIPS Line at 1-877-IBC-TIPS (422-8477) or submit a tip online at under Report Insurance Crime.