A Canadian man was recently convicted of insurance fraud after he shipped his car to Nigeria and reported the vehicle stolen, The Claims Journal reported.
Desmond Stewart, 55, of Whitby, Ontario, pleaded guilty to public mischief last week for falsely reporting a stolen vehicle, according to a press release.
Insurance company Aviv Canada collaborated with Durham Regional Police after a staff member noticed discrepancies in Stewart's report and raised concerns with the Aviv Canada investigative team.
The vehicle was traced to a shipping container that had cleared Canadian customs and departed for Nigeria in July. Stewart did not report the vehicle stolen until after it had cleared customs, the press release said.
The impact of insurance fraud in Canada is estimated at more than $1.6 billion dollars annually, the press release stated.
"Like staged accidents, unrecovered vehicles and staged thefts are becoming a bigger problem in Canada," said Greg Dunn, executive vice president of national claims with Aviva Canada. "Insurance fraud costs everyone, but through continued cooperation with local authorities we can take these costs out of the system to help reduce premiums."
Aviv Canada denied Stewart's claim and cancelled his insurance policy.
He was ordered to pay $3,450, received one year's probation and is required to complete 100 hours of community service. Insurance fraud is a particularly big problem in Ontario, according to the Claims Journal.
The nonprofit CANATICS, or Canadian National Insurance Crime Services, recently formed with the goal of identifying potentially suspicious insurance claims to aid in the investigation of insurance crime.
"By uncovering networks of connected claim activity across insurers we will help ensure that investigators focus their investigations on the right claims," said Ben Kosic, the newly appointed CEO for CANATICS.
Canadians who suspect insurance fraud can contact the Insurance Bureau of Canada's TIPS line at 1-877-IBC-TIPS, the Financial Services Commission of Ontario's Fraud Hotline at 1-855-5TIP-NOW or Crime Stoppers at 1-800-222-TIPS.
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