Manitoba Public Insurance (MPI) has published a new report, which reveals that auto insurance fraud charges in 2020 have almost tripled from last year.
As of July 2020, MPI found that a total of 88 charges were laid against 33 people accused of auto insurance fraud. By comparison, there were 30 charges laid against 10 people in 2019.
“This increase is partially attributed to MPI’s refocused effort in reviewing suspicious cases,” said MPI COO and vice-president of customer service Curtis Wennberg in a statement.
Wennberg added that MPI has adopted a business change to emphasize that insurance fraud is a “crime.” This means that the insurer now pursues both a denial of coverage and charges against fraudsters.
“Following extensive investigations, these files are forwarded to the provincial prosecution office for review,” the COO said. “These charges fall within either the Criminal Code, the MPIC Act or Highway Traffic Act. A conviction of any nature is a very serious consequence of auto insurance fraud.”
The charges laid against violators can vary, from making a false statement, to fraud over $5,000, to fraud under $5,000. MPI also noted that those found guilty in the courts face a fine, criminal charges and/or restitution orders to pay back the insurer.
“A criminal record can affect travelling across the border, employment or business opportunities,” warned Wennberg. “Insurance fraud is not a victimless crime and this criminal activity affects honest Manitobans through their premiums.”
MPI operates its own Special Investigation Unit (SIU) to root out fraudulent insurance claims. Last year, the SIU’s efforts led to claims savings of over $10 for MPI ratepayers. SIU also managed to close more than 1,200 investigations in 2019, a release said.
