Car Insurance Fraud in Canada

In Canada every year there are thousands of insurance fraud cases that affects many honest insurance consumers. Car insurance fraud is rampant across Canada and is more in certain provinces than others; such as Ontario. There are many ways to commit insurance fraud and sometimes you may wonder a small lie may not hurt anyone. When someone fabricates a claim or a medical expense it is a punishable crime that could have very grave consequences. However, IBC has partnered with other resources and law enforcement agencies to identify insurance fraud and use advanced detection technology and analytics. So, it is not that easy as before to get away with insurance fraud.

Types of Insurance Fraud


There are a variety of ways that someone could commit an insurance fraud. Be it in the application process stage or during filing a claim, a fraudster could find a way to succeed. On your insurance application, when you give a wrong postal code or try to give false information then that is insurance fraud. Any type of material facts that you don’t disclose could come across as falsifying facts for rate evasion.

Then there is the fake claims and staged collisions that could be devised by an individual or a group of organized criminals. These may include fraudsters who work in different areas, in the towing shops, repair shops, medical facilities etc. to stage a fake collision.

Claims for Staged Collisions

When you participate in staging collisions to profit from insurance claims then that is a crime and fraud. There are many claims that involve deliberate collisions or avoidable collisions to benefit from auto insurance claims. IBC works along with insurance companies and the police to tackle the ever increasing insurance fraud. You may also do your part as a responsible law abiding person by reporting any suspicious activity to IBC. They also have an anonymous online option if you wish to tip them about an accident that you witnessed and sensed something wrong.

IBC also has several campaigns aimed at increasing awareness about insurance fraud. You may take some photos and record details such as the license plates, driver and vehicle details etc. The more information you are able to give to the investigators, the better it would be to curb crime. If you are involved in a collision and you felt that it was a deliberate attempt by the other party then you must inform the police and tip off IBC. Do not forget to inform your insurance company too. Maybe it was a staged accident and you unknowingly became a victim.

Consequences of Insurance Fraud

All insurance fraud does affect everyone in some way or the other. Such crimes cost the insurance industry billions of dollars. So, they increase their rates and even honest consumers end up paying much more than they should have otherwise. When you commit an insurance fraud then you may pay a heavy penalty and get jail time that could affect your present and future life. Your immigration and employment status is affected too and you have to pay a very high cost for insurance fraud.