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OIP News - Insurance Fraud

Knowledge is Power!

Consumers all over the country have been flooded recently with calls from scam artists claiming to represent insurance companies.   The Insurance Bureau of Canada reported two common insurance scams:

 1. Outstanding Payments

  • Callers are identifying themselves as representatives of an insurance company (a number of leading insurance company names have been used) and informing the consumer that an outstanding bill is owed to the insurance company. 
  • The caller demands immediate payment over the telephone via credit card, and threatens to cancel the insurance policy if the credit card information is not provided. 

 

2.   Vehicle Warranty/Vehicle Insurance

  • Consumers have received live and automated calls informing them that a warranty on a vehicle is expiring or that an outstanding premium on an auto insurance policy is owed.   The consumer is then asked to provide credit card information for payment.

 

These callers do not represent insurance companies.  The insurance industry does not operate using aggressive tactics.  Many insurance companies will send a letter to address outstanding premiums, and will not demand payment over the telephone with a threat of cancellation.   Typically, you will receive a registered letter from your insurer, and some brokers, such as Pottruff & Smith, will follow up with a phone call. 

 

Protect Against Fraud: 

  • Be wary of releasing financial information over the telephone, particularly when you did not initiate the call. 
  • If you receive a call similar to the above, disconnect and contact the Insurance Bureau of Canada at 1.877.IBC.TIPS.  You can also provide the information confidentially at www.icb.ca/Insurance_Crime/Report_Insurance_Crime.asp
  • If you received a call like this recently and are concerned because you provided credit card information, contact your credit card company immediately. 
  • If you are uncertain, contact your broker for assistance. 

Want to Know More?

Call us toll free 1.888.681.2862 or email ovma@csib.org. The OIP is administered by Cornerstone Insurance Brokers, Ltd.