The Canadian Coalition Against Insurance Fraud defines insurance fraud as any act or omission with a view to illegally obtaining an insurance benefit -- in other words, any action where claimants walk away with money to which they're not entitled.
Insurance fraud of all types is estimated to be a leading source of criminal profits in North America, and includes a full range of fraudulent acts: completely fabricated claims, inflation or padding of genuine claims, false statements on insurance applications, and internal fraud.
Fraudulent claims represent approximately 10 to 15 per cent of claims paid out. Insurance fraud amounts to approximately $1.3 billion per year in Canada. This cost is paid for by honest policyholders through increased premiums.
Manitoba Public Insurance continues to undertake and support various initiatives to combat auto insurance fraud, including:
- A Special Investigations Unit
- A special Crown Prosecutor
- Partnerships with law enforcement agencies
- An anonymous TIPS line
- Holding fraudsters accountable, making them pay for their crimes