IBC welcomes Ontario's clampdown on fraud
Insurance fraud is an ongoing problem in Canada, but the Ontario provincial government recently brought in a new regulation to help curb its prevalence.
The regulation includes a requirement that gives health care providers 10 days to provide Ontario insurers with information the insurer may need to determine liability for payment. Another new provision forbids claimants from applying for mediation if they fail to comply with the insurer’s request for an insurer examination.
"We are pleased that our industry will have additional resources with which to combat fraudulent activity which affects the insurance industry, and most importantly, the consumers we serve," said Ralph Palumbo, Vice-President of IBC Ontario. "We commend the work of the Financial Services Commission of Ontario in this regard, and, of course, the government for taking this timely and appropriate action."
According to the IBC and a 1993 study, 15 percent of all auto insurance claims in that year had some element of fraud in them. In 2000, a poll conducted by the Canadian Coalition Against Insurance Fraud found that 46 percent of Canadians thought it was easy to submit a fraudulent claim.