Insurers Intensify the Fight Against Fraud
Did you know that insurance fraud in Canada costs an estimated $1.3 billion a year? Unfortunately, all policyholders pay the price.
For this reason, policyholders caught attempting insurance fraud risk:
- Losing the entire indemnity they would have been entitled to had they been honest. For example, a victim of theft who claims $20,000 in damages as well as a $1,000 digital camera he didn't own risks being refused the entire indemnity, including the $20,000;
- Trouble getting reinsured. Very few insurers are inclined to insure someone who has previously committed insurance fraud.
Source: Insurance Bureau of Canada (IBC)