Fake Auto Insurance on the Rise

Aug 30, 2012
Categories: Driving · Safety
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How well do you know your Insurance provider? Do you trust that they are a reputible company?

Routine traffic stops by members of the Southern Georgian Bay auxiliary unit of the Ontario Provincial Police (OPP) are revealing an increase in fraudulent insurance documents.

“Unsuspecting consumers are being targeted by fake insurance companies selling auto insurance in Ontario,” says a press release from the OPP. Citizens are reminded to exercise caution when buying insurance and to ensure they are purchasing products from reputable brokers and insurance companies.

A recent KPMG study indicates auto insurance fraud is conservatively estimated to cost Ontario drivers $770 million to $1.6 billion per year, the police report.

Richard Dubin, vice president of investigative services for Insurance Bureau of Canada (IBC), advises checking the person selling insurance through the Registered Insurance Brokers of Ontario (RIBO). “If it sounds too good to be true, stay clear,” Dubin says.

A person convicted of producing fraudulent insurance faces a fine of $5,000 to $25,000 on a first conviction, and $10,000 to $50,000 on a subsequent conviction, as well as suspension of his or her driver’s licence for as long as year.

How well do you know your Insurance provider? Do you trust that they are a reputible company?

Routine traffic stops by members of the Southern Georgian Bay auxiliary unit of the Ontario Provincial Police (OPP) are revealing an increase in fraudulent insurance documents.

“Unsuspecting consumers are being targeted by fake insurance companies selling auto insurance in Ontario,” says a press release from the OPP. Citizens are reminded to exercise caution when buying insurance and to ensure they are purchasing products from reputable brokers and insurance companies.

A recent KPMG study indicates auto insurance fraud is conservatively estimated to cost Ontario drivers $770 million to $1.6 billion per year, the police report.

Richard Dubin, vice president of investigative services for Insurance Bureau of Canada (IBC), advises checking the person selling insurance through the Registered Insurance Brokers of Ontario (RIBO). “If it sounds too good to be true, stay clear,” Dubin says.

A person convicted of producing fraudulent insurance faces a fine of $5,000 to $25,000 on a first conviction, and $10,000 to $50,000 on a subsequent conviction, as well as suspension of his or her driver’s licence for as long as year.

 

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