Issues warning that false pink insurance slips are a fraudulent and dangerous practice
TORONTO, Nov. 4, 2014 /CNW/ - Reacting to charges laid by Toronto Police Services in their investigation Rick Dubin, Vice-President, Investigative Services, Insurance Bureau of Canada (IBC) said "This case is a shocking and sobering example that if the deal sounds too good to be true, it probably is. Make sure you do your homework to ensure your protection on the roads."
The perpetrators involved allegedly defrauded people and insurance companies and created a dangerous environment where uninsured motorists were on the roads and in some cases, involved in collisions without valid coverage. If a loss occurs, the person holding the policy has no valid insurance coverage.
This case allegedly involved an auto repair facility principal, who took advantage of (typically high risk) drivers needing insurance by providing false insurance pink slips in exchange for their "premiums" – monthly payments which were often collected at a local coffee shop. In multiple cases, a valid garage policy was purportedly misrepresented as providing coverage to vehicles sold or leased to victims and false documents were created. In an apparent effort to keep the false policies from coming to light, in some cases vehicle collision damage was reportedly repaired at the accused's garage. However personal injury claims and third party claims were left with no valid recourse.
"IBC worked with police, sharing knowledge about insurance practices and false insurance slip concerns. IBC and member insurers also worked together to provide the information and documentation necessary to advance the criminal investigations successfully" explained Dubin.
This case is a perfect example of why it so important to know what insurance you are purchasing and who you are buying it from. "Insurance fraudsters are very creative. They will take advantage of unsuspecting consumers. Your best defence is a good offence and making yourself an informed consumer is a great defence," added Dubin.
A legitimate pink liability slip – the evidence that you have insurance on your vehicle – is confirmation of the contract that exists between you and your insurance company. It also serves as confirmation that an approved and licensed representative bound coverage. It's important to buy insurance from a registered insurance representative. IBC has a link to resources for consumers to confirm who they are buying policies from.
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is pleased to celebrate 50 years as a valuable resource for insurance information. Since 1964, IBC has been working with governments across Canada to make our communities safer, championing issues that directly affect Canadians and the property and casualty (P&C) insurance industry. IBC is the national industry association representing Canada's private home, car and business insurers. Its member companies represent 90% of the P&C insurance market in Canada. The private P&C insurance industry employs over 118,600 Canadians, pays more than $7 billion in taxes and levies to the federal, provincial and municipal governments, and has a total premium base of $48 billion.
If you require more information, IBC spokespeople are available to discuss the details in this media release.
SOURCE: Insurance Bureau of Canada
For further information: To schedule an interview, please contact: Celyeste Power, Manager, Media Relations, Insurance Bureau of Canada, 416-362-2031 ext. 4312 (office), 647-384-9872 (after hours), email@example.com