Cracking Down On Auto Insurance Fraud
July 29, 2011 11:40 AM
McGuinty Government Helps Lower Costs for Ontario Drivers
Ontario is cracking down on auto insurance fraud - which will go on to benefit drivers through lower insurance premiums and increased road safety by reducing the number of staged accidents.
A new Auto Insurance Anti-Fraud Task Force will make concrete recommendations to address fraud. It will focus on prevention, detection, investigation and enforcement, as well as consumer education.
Announced in the 2011 Ontario Budget, the task force builds on other initiatives undertaken by the government to help the auto insurance industry address fraud, including:
- A package of auto insurance reforms implemented in September 2010;
- A newly established Health Claims for Auto Insurance database to detect potentially fraudulent activity; and
- New rules to ensure that consumers are actually receiving the treatments invoiced by health care clinics and other providers.
The Task Force Steering Committee, chaired by Fred Gorbet, will include representatives from the insurance industry, academia and the justice sector, as well as a consumer advocate.
Quick Facts
- The steering committee will provide a number of reports to the government, including immediate action recommendations this fall and final recommendations by fall 2012.
- Insurance industry reports estimate fraud to be nearly a billion dollar business in Ontario.
- Auto insurance fraud generally falls into two categories: opportunistic fraud is the padding of originally legitimate claims; premeditated fraud includes activities such as staged collisions or billing for services not provided.
- Under the McGuinty government, auto insurance rates have risen at a slower pace than inflation, and Ontario's accident benefits remain the most generous in Canada when compared to other provinces with similar auto insurance marketplaces.
Learn More
- Ontario's Auto Insurance Anti-Fraud Task Force
- Auto Insurance Anti-Fraud Task Force: Steering Committee Members
- See how Ontario drivers can help fight auto insurance fraud.
- Try the Financial Services Commission of Ontario's interactive tool to see how shopping around for auto insurance can result in a lower premium.
- Read about the choices available to Ontario drivers buying auto insurance.
Contacts
- For Media Inquiries only
Aly Vitunski - Minister's Office
416-325-9819
aly.vitunski@ontario.ca - For Media Inquiries only
Scott Blodgett - Ministry of Finance
416-325-0324
scott.blodgett@ontario.ca - For public inquiries call
1-800-337-7222
TTY: 1-800-263-7776
Ministry of Finance
ontario.ca/finance