Manitoba

Top 5 frauds of 2015 from Manitoba Public Insurance

Manitoba Public Insurance has released its annual Top 5 list of fraud claims, highlighting stories of fake thefts, phony crashes and a fictional grass fire.
Minor accident with one car rear-ending another.
The Manitoba Public Insurance investigation unit's efforts resulted in fraud savings of $7.6 million last year, MPI officials say. (Robert Crum/Shutterstock)

Manitoba Public Insurance has released its annual Top 5 list of fraud claims, highlighting stories of fake thefts, phony crashes and a fictional grass fire.

Fraudulent and suspicious claims are handled by MPI's special investigation unit.

Here are the details of those claims, as told by MPI's media relations unit.

No. 1: Crash data recorder tells all

A Winnipeg man stated that he had been the victim of two consecutive hit-and-runs on the same night.

He told MPI investigators that he was struck from behind by a dark SUV while driving in rural Manitoba. The driver of the SUV did not stop, so the man quickly went into pursuit mode. The vehicle owner claimed a short time later, his vehicle was hit from the side by a truck — with the driver of the truck getting out and fleeing to the original dark SUV.

The vehicle's crash data recorder told a different story. It indicated the vehicle was parked at the time of the impacts. The man pleaded guilty to public mischief and received a $3,500 fine.

His claim was also denied, resulting in a savings of $15,000 for MPI.

No. 2: What the hay

Hay and dry grass were stuffed into a vehicle's engine area and SIU investigators also discovered hay stuffed into the headlight areas. Turns out the vehicle owner was trying to destroy his vehicle by setting it on fire, according to MPI officials.

His story was that he attended a party outside the city and noticed a large fire in a hay field. He claimed he quickly jumped in his vehicle and, accompanied by a few pals, drove out to investigate. He claimed he emptied a fire extinguisher in failed attempts to snuff the fire, which then engulfed his vehicle.

But the story didn't add up. In addition to the suspicious placement of hay, an arson investigator discovered a flammable accelerant had been splashed throughout the passenger compartment.

Faced with the results of the investigation, the vehicle owner chose to withdraw his claim, saving MPI $14,000.

No. 3: Cruising for trouble

A woman told MPI her vehicle was stolen, not realizing MPI and the Winnipeg Police Service routinely share information.

Truth is, the woman willingly gave the vehicle to a male friend, whom police had attempted to pull over during a traffic stop. The officers noted the woman sitting in the passenger seat.

The woman was later arrested and pleaded guilty to public mischief. She was given 12 months probation and a conditional discharge.

No. 4: Unlicensed friend

Much like the woman in the above case, a man claimed his vehicle had been stolen after it was found badly damaged.

However, he also told police he had given his vehicle to a friend, who was then involved in two collisions. The friend had no driver's licence, which the vehicle owner knew. Winnipeg police shared that information with MPI.

Because he knowingly gave his vehicle to an unlicensed driver, the owner's theft claim was denied, saving MPI $34,000.

No. 5: Not so injured

A woman sustained injuries to her shoulder and back after being involved in a collision. She then began collecting benefits, including income replacement payments.

As the months went on, she told her case manager she was too injured to work. However, the special investigation unit discovered the woman had in fact returned to physically demanding agriculture work.

She pleaded guilty to fraud and was sentenced to three years of supervised probation, 200 hours of community service work and restitution of $36,000.

The special investigation unit looks into about 2,500 claims annually. The unit's efforts resulted in fraud savings of $7.6 million last year, MPI said in a news release.

Anyone aware of auto insurance fraud is encouraged to call MPI's tip line at 204-985-8477 or toll-free at 1-877-985-8477. All calls are anonymous.