Four arrested in staged collision investigation

Ontario’s budget may have passed, but auto insurance fraud is still clearly alive and well.

 

The budget contains a number of auto insurance anti-fraud measures that will roll out over the next year. Not even 24 hours after the Liberal minority government passed its budget with opposition NDP support, Toronto police announced arrests have been made in a staged auto collision investigation.

 

Police allege that four people in January 2012 participated in a staged auto−collision in the Greater Toronto Area (GTA) between two vehicles at the intersection of Dixon Road and Martin Grove Road. 

The insurers involved in the claim, Aviva Canada and The Dominion of Canada General Insurance Company, retained engineers to reconstruct the reported collision. They determined that one of the vehicles had allegedly rammed the other vehicle deliberately and multiple times, police say.

 

“The purported collision in the city’s west end resulted in over $45,000 in claims costs to two automobile insurers,” Aviva Canada said.

 

Police have charged Rakio Shire, Ramla Shire, Sheeraz Qureshi, 34, and Justin Wansbrough, 25. All four are scheduled to appear in court on January 28.

 

Aviva Canada said a vehicle it insured contained two occupants who both had medical treatment costs submitted on their behalf by a west end Toronto clinic. Evidence collected during the investigation revealed that the vehicle occupants were asked to sign multiple treatment plans by employees at the clinic. (continued.)

 

The investigation into the clinic involvement continues. Aviva Canada has submitted an official complaint with the College of Chiropractors of Ontario against the chiropractor employed at the west end rehabilitation clinic.

 

“It has to stop,” said Greg Dunn, executive vice president of national claims for Aviva Canada. “Staged collisions are extremely dangerous and are costing Ontarians too much.”

 

Research shows auto insurance fraud is costing insurance companies approximately $1.6 billion in claims each year. Brokers around the province have told Insurance Business the problem is predominantly an issue in the Greater Toronto Area (GTA).

 

The government’s budget shows that accident benefits claims costs grew especially quickly in the Greater Toronto Area (GTA) between 2006 and 2010, with a substantial portion of these costs being attributed to fraud and staged collisions. 

 

Of the $2.4 billion increase in insurers’ accident benefits costs in Ontario between 2006 and 2010, $2 billion occurred in the GTA. Also, accident benefits claims costs per vehicle in the GTA were more than four times higher than in rural Ontario in 2010.

 

The Insurance Brokers Association of Ontario (IBAO) has steadfastly supported the implementation of anti-fraud measures in Ontario’s budget, which became a political football prior to being passed this week. The opposition NDP supported the budget on condition that the government commit to a 15% auto insurance rate cut. 

 

The IBAO and Insurance Bureau of Canada, representing Canada’s home, auto and business insurers, both say the anti-fraud measures contained in the Ontario budget will go some way towards bringing about the 15% rate cut.

 

Among the recommendations contained in the budget, the government is seeking to “give the Financial Services Commission of Ontario (FSCO) authority to license and oversee business practices of health clinics and practitioners who invoice auto insurers.”