Manitoba Public Insurance unveils top five claims fraud cases in 2023

Manitoba Public Insurance unveils top five claims fraud cases in 2023 | Insurance Business Canada

Insurance News

Manitoba Public Insurance unveils top five claims fraud cases in 2023

Investigations resulted in savings of more than $10.5 million

Insurance News

By
Jonalyn Cueto

Manitoba Public Insurance (MPI) has shared the top five attempted fraud schemes in 2023 according to its Special Investigations Unit (SIU).

Auto insurance fraud in Manitoba costs more than $50 million every year, according to the MPI. Last year, the SIU closed more than 3,000 investigations of fraud resulting in claims savings of more than $10.5 million for customers.

MPI’s top five cases of fraudulent claims in 2023

Memory lapse. According to MPI, a customer opened a collision claim for their vehicle but could not confirm what occurred to cause the damage. The customer reported being made aware of the need for repairs after going to an impound.

MPI investigators found the same vehicle driving erratically, causing damage to property. and colliding with another parked vehicle. Open drugs and alcohol were also seized from the vehicle. The driver maintained having no recollection of the incident. As a result, the claim was denied.

Need for speed. The customer reported a single-vehicle collision claim, saying they hit a bump in the road and lost control of their vehicle while travelling at a speed limit of 60 km/h. An SUI investigation showed the car was driving 181 km/h at the time of the collision. The claim was denied, and the driver had their licence suspended.

Lifting lies. A customer reported that their neck, shoulder, and arm pain, as well as dizziness, nausea, and headaches, were so severe they were unable to work, resulting in them being able to receive benefits from MPI’s Personal Injury Protection Plan.

An investigation revealed the customer was able to perform a number of physical activities, including carrying a full water jug, which weighed over 40 lbs, shovelling snow, operating a wand pressure washer as well as lifting, carrying, and loading a step ladder into their vehicle. The claimant’s entitlement to income replacement benefits ended because of the investigation.

Sneaky keys. A customer applied for a total theft claim, reporting their truck had been stolen overnight. They claimed there were two keys for the vehicle, and one went missing. The insurance was set to expire the day after the theft was reported to have taken place.

The customer also reported the incident to the police; however, they gave conflicting statements, telling the police they were given only one key when they purchased the vehicle. The police contacted SIU investigators after finding the stolen truck had been involved in a single-vehicle collision rollover. There were no occupants and no keys found in it. The claim was denied due to the customer making a false statement.

Unsupervised driver. A driver filed for a claim, reporting a collision with their spouse in the passenger seat. Following an investigation, the driver was found to be alone in their vehicle despite licence restrictions requiring them to have a supervising driver at all times. The claim was denied due to the policyholder making a false statement.

The MPI is seeking the public’s participation in reporting suspected insurance fraud. Please visit mpi.mb.ca for more details.

“Our experts in SIU investigate suspicious claims to give customers the peace of mind that the right claims are being paid for the right amount,” said Satvir Jatana, chief customer officer of MPI.

“This annual list showcases some of the most unique ways people attempt to commit fraud, and the techniques MPI’s experts use to stop them, helping to save our ratepayers millions of dollars.”

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