Ontario Anti-Fraud Task Force Recommends Extensive Changes

December 7th, 2012  |  Auto Insurance

Fender benders and car accidents are part of life. They happen frequently and we see them all the time as we go about our day. While many people once involved in an accident, go through the protocol of exchanging information with the other driver and go to the accident reporting centre. Many are forgetting to ask an important question: – “Was this accident part of an insurance fraud scam?” and “Could I be the victim of an insurance scam?”.

Insurance fraud is the real deal. It happens more often than most people think and it is a serious issue that costs insurance companies millions and millions of dollars each year.

Since it is such a serious issue, the Ontario anti-fraud task force is looking to make adjustments to the current system to allow for more effective methods to investigate and enforce auto insurance fraud. A recent report was released by the task force calling for modifications to be made to current laws and regulations related to auto insurance fraud.

While more than 40 recommendations were made, there are three areas in particular that the task would like to see amended in Ontario’s Insurance Act:

1. Clinic licensing: The task force recommends creating licensing for health clinics that are used to treat people involved in accidents.
2. Greater public discourse: This calls for insurers to make it public how they select the companies they recommend to their customers 
3. More power for FSCO: The recommendations call for more power for FSCO to investigate and place restrictions on organizations that take part in deceptive insurance acts. 

While these recommendations are still under advisement, there are some things that drivers can do to protect themselves. If you are involved in an accident, look for the signs of a scam immediately. If the other driver is acting odd or if they are quick to try to persuade you to do something, be on high alert. If anything seems odd, don’t take the risk, talk to the police and call your insurance company. They will be able to help you with the next steps.