TORONTO, April 6, 2016 /CNW/ - Insurance Bureau of Canada (IBC) congratulates York Regional Police on exposing an alleged staged collision scheme that has led to a total of 24 criminal charges being laid against four individuals. IBC's Investigative Services division as well as member companies supported police investigators in this case.
By requiring police, ambulance and fire personnel to attend a collision scene, criminals who stage collisions for profit are wasting these limited resources, making them unavailable to respond to legitimate and potentially life threatening emergencies, and can even put the lives of emergency responders at risk.
"Staged collisions can draw innocent drivers into dangerous situations on the road," said Garry Robertson, National Director, Investigative Services, IBC. "Insurance crime adds unnecessary costs to our health care system, emergency services and courts, and it costs consumers in the form of higher insurance rates."
Organized insurance fraud reduces road safety and drives up premiums for everyone. A single staged collision can result in more than $100,000 in fraudulent payouts. A government-commissioned report from KPMG for the Ontario Auto Insurance Anti-Fraud Task Force estimated that in 2010, the cost of insurance fraud ranged from $768 million to $1.56 billion dollars a year. This amounts to between $116 and $236 per average premium paid in Ontario in any given year.
"Insurance crime is big business. When they cheat, we all pay," continued Robertson. "IBC and police services rely on help from the community to catch fraudsters. That is why we always encourage people with information about insurance crime to report it online at ibc.ca, call our anonymous TIPS Line at 1-877-IBC-TIPS or call Crime Stoppers at 1-800-222-TIPS.
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $8.2 billion in taxes and has a total premium base of $49 billion.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC.
If you require more information, IBC spokespeople are available to discuss the details in this media release.
SOURCE Insurance Bureau of Canada
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