Auto insurance fraud has a financial cost for all Manitoba Public Insurance ratepayers, which is why the province’s public auto insurer is putting out the call to Manitobans to report suspected fraudsters.
Disturbingly, the Corporation’s Special Investigation Unit is seeing an increase in fraudulent activity. As a result MPI watchdogs are initiating more investigations and using new investigative tools that are anticipated to save Autopac ratepayers upwards of $8 million this year, compared to $6.5 million in 2017.
One such investigation recently resulted in a Hadashville man being ordered to repay $35,056 in insurance benefits paid after pleading guilty to making a false statement. In addition to the court-ordered restitution, the man – who stated he was unable to work due to injuries after an auto crash – was fined $1,000 plus court costs of $450. He was also given a three-year supervised probation order during which time he must complete 50 hours of community service work.
Investigations revealed the man was working full days doing construction, including working on his cottage and boathouse while collecting income replacement benefits from MPI.
“Fraud is a concern for all insurance companies and Manitoba Public Insurance is no exception,” said Curtis Wennberg, vice-president Customer Service & COO, Manitoba Public Insurance. “While some may see fraud as a ‘victimless crime’, the reality is that auto insurance fraud costs every single ratepayer; which makes every honest MPI customer a victim. This is why we’re reaching out to all Manitobans to help stop auto insurance fraud by reporting information confidentially and anonymously to the Manitoba Public Insurance TIPS line.”
What is Auto Insurance Fraud?
While some frauds may be elaborate and highly planned such as staged collisions involving multiple vehicles or intentional vehicle arson, auto insurance frauds can also be less overt. Examples may include exaggerating personal injury, claiming income replacement indemnity when able to work, claiming unrelated or pre-existing vehicle damage, or providing a false or misleading account of how a crash happened.
Committing auto insurance fraud can have serious consequences. In Manitoba, claims confirmed as fraudulent will result in termination of benefits, outright denial of insurance coverage, or possible criminal charges being laid.
“Fraud schemes can be very complex but also very simple,” added Wennberg. “In the end they all create unnecessary costs to our ratepayers, which is why we are committed to investigating all suspected fraudulent activity involving claimants or service providers.”
