Auto Insurance and Personal Injury Fraud in Ontario

Auto Insurance and Personal Injury Fraud in Ontario

For most people in Ontario automobile insurance rates are very high. When election time comes around, all political parties have something to say about how they will reduce the rates of insurance for Ontario drivers. The article What the Ontario Party Platforms Say About Auto Insurance   outlines what the Liberal, Conservatives and NDP had to say about auto insurance.

The Liberal party:
– Want to reduce insurance rates by 8% by august of this year and 15% by next august
-introduced bill 171 “The Fighting Fraud and Reducing Automobile Insurance Rates Act”
– this act is to reduce the amount of fraud and abuse that is related to auto insurance

The NDP:
– is not happy with the pace of change
– believe that the current government has promised changes but have not made them
– they claim that they would reduce insurance rates by 15%
-want a system with transparent rate-setting.

The Conservatives:
-currently have an auto insurance action plan in place
– believe that there are many flaws in our current system
– there are 4 important areas that they believe need to change
1. there is too much red tape
2.insurance fraud is rampant and needs to be dealt with
3. the dispute resolution system is broken and needs to be adjusted to help save time and money
4. insurers needs to be accountable to their customers and want more discounts available to drivers in Ontario.

The Conservative party currently uses the Health Claims for Auto Insurance electronic billing system to help find people who are committing personal injury fraud. This type of fraud is extremely problematic and needs to change.

On the IBC website different types of personal injury fraud from car “accidents” are explained.
Some of the types mentioned are:

swoop and squat 

-sideswipe scenario

-imaginary accidents

-seat sales

It is very important that everyone is familiar with  these types of fraud so that if we ever  have to deal with these types of scenarios, that we are able to spot that we are being scammed.

Hilary Bowser is a Paralegal student at Centennial College in Toronto studying professional communications with Omar Ha-Redeye.

 

 

 

 

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