Friday, 16 March 2018 15:20

Fraud Investigation Signals Need For Auto Insurance Reform in Canada

Written by Robert Tuomi, The Square
Fraud Investigation Signals Need For Auto Insurance Reform in Canada Photo by Ian Shalapata


According to insurance company Aviva, Canadians are paying billions for auto insurance fraud. In its estimation, in Ontario this amounts to almost $550 million annually.

The company says it has solutions---five of them.


To find out how bad fraud is, the company conducted an investigation to determine the full extent of auto repair fraud. Aviva set out to discover what really happens when damaged vehicles are sent to auto body shops after a collision. After reviewing what it could see as fraud, it determined illegitimate repairs and practices cost Ontario motorists approximately $547 million annually.


Working behind the scenes in a year-long secret operation, Aviva’s fraud investigation team purchased 10 cars, which investigators and automotive experts deliberately crashed and damaged. These experts, retained by Aviva, carefully examined and assessed each car to calculate the actual extent and cost of repair.


Equipped with hidden cameras, the damaged cars were positioned near provincial highways at random locations in the Toronto area to simulate collisions. Undercover investigators posed as drivers were equipped with recording equipment.

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