Amy Laban may be an accomplished Gap model, Miss England finalist and Birmingham City FC soccer player, but that didn’t stop her from committing a popular form of auto insurance fraud, according to the
Birmingham Mail.
While tabloids are frenzied over the news, the scam has reinforced broker apprehension that fraudulent whiplash claims may soon become pervasive in Canada.
25-year-old Laban’s claim involved a demand for damages worth more than $6,000. When the star failed to show up to her medical appointments, however, the auto insurance provider esure became suspicious.
Investigators soon obtained photograph evidence of the model partaking in skydiving training and working out before a beauty pageant. The footballer herself even posted announcements of her upcoming matches and photos where she was riding a mechanical bull.
She attempted to blame her crime on legal firms, arguing that “numerous” legal representatives encouraged her to make a whiplash claim. The judge overseeing this case disagreed, ruling that “The claim was fraudulent right from the start” and sentencing Laban to two months in jail.
The judge has been unwavering in his support of the industry.” “People think this is a victimless crime; however, it uses the courts resources to facilitate the crime; it uses insurers’ resources.”
There is sufficient evidence to back that assertion. esure recently announced that its premiums would soon rise by 15%, primarily because of fraudulent whiplash claims, costing UK policyholders an additional $163 per year.
Related events frequently transpire in Canada, and could soon have a similar effect on domestic auto insurance rates.
“From a big picture standpoint, this is happening in Canada, particularly Ontario, which is the staged-collision capital of the country,” said Rick Dubin, vice president, investigative services,
Insurance Bureau of Canada, in a previous interview with
Insurance Business.
Dubin’s team frequently encounters complex auto insurance scams involving organized crime circles that not only conduct staged collisions, but continue to defraud medical services, providing treatment afterwards.
“Not only will they claim soft tissue injuries when they’re not really impaired, but they will claim accident benefits and related treatments such as physiotherapy, chiropractic and weekly income disability or charge rehab facilities for services that aren’t being rendered,” he said.
He advises brokers and claims representatives to be on the lookout, since auto insurance fraud costs the industry $1.6 billion in Ontario alone.
“If anything suggests that a claim might be fraudulent, report it to 1-877-IBC-TIPS, Crime Stoppers or the police,” he said.
