Rise in fake auto insurance claims in Canada

28th December: Canada is witnessing increased number of fake auto insurance claims these days. 

28th December: Canada is witnessing increased number of fake auto insurance claims these days.

And its primarily because this seems to be a good source of making easy money for many people ready to seek car insuranceclaims by showing fake auto accidents.

Several Canadian provinces including Ontario are witnessing such incidents at an alarmingly high rates compelling task-force teamsto take stern steps to curb happenings in the near future.

And the sad thing about the whole issue is that innocent people are being lured to seek fake car insurance claims by taking part in fake accident-scenes.

A recent example of one such incident is of Harris Ahmed from Toronto who agreed to become a party to the fake car insurance claim. Mr. Ahmed admitted that he was asked by a man that he will be given $1,000 in cash for each driver as well as passenger arranged for participating in fake insurance accident claims for being hurt.

And after a couple of weeks, a fake car accident with a Jaguar was arranged in a suburb of north-Toronto.

When the investigators went on with their operations, they found a harrowing fact that revealed a huge auto insurance industry being run for pocketing good money through such seemingly real accidents.

Around 40 fake car accidents surfaced to the ground after the team of investigators probed such happenings and the persons behind such fake car insurance claims had made a whopping $10 million.

The investigators behind these operations are terming it to be among the biggest fake auto-insurance claim ring unearthed in Canada so far. No wonder, it is going to be make things difficult for even the genuine car-insurance claimants in Canada.

The investigations also revealed that the fake auto-insurance ring also had a rehabilitation clinic for getting claims for treatment of injuries that did not happen in reality. And it also proved that the auto-insurance industry was falling a prey to organized crimes.

It may be worth mentioned that in Ontario, around $9 billion are paid by consumers annually towards car premiums and its estimated that around $1.3 billion are for covering fake car insurance claims.

RBC Insurance’s president Kathy Honor maintains that the amount of fake car insurance claims is increasing day-by-day.

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