Insurance Fraud Hurts Everyone

There is no such thing as a little fraud There are big lies and little lies, but insurance fraud can be anything from claiming two or three extra CD’s being stolen from your car, to claiming large sums of tools stolen from your garage, to falsifying an injury in order to collect weekly indemnity benefits.

Each year, insurance fraud costs Canadians $3 billion. That means 10 to 15 cents of every dollar you pay as premium is used to cover fraudulent insurance claims. Insurance fraud really does cost everyone.

Insurance fraud costs all of us in the form of higher premiums. If someone you know is committing insurance fraud on a home, car or business policy, you can report it to CrimeStoppers at 1-800-222-TIPS. If your tip helps the police or your insurance company catch an insurance fraud, you may be eligible for a cash reward – your call will remain completely anonymous.

Common types of fraud or attempted fraud include:

  • Lying about the way a loss occurred.
  • Adding items or inflating the value items in a claim.
  • Filing fraudulent automobile accident or damage claims (i.e. including previously existing damage when submitting a claim).
  • Withholding information about past accidents, traffic convictions, claims, policy cancellations or non-renewals.
  • Receiving payments for treatments not received.

If you are caught committing or attempting to commit insurance fraud:
  • Your claim will be denied.
  • Your insurance policy may be cancelled outright.
  • You may pay higher premiums in the future.
  • You may be denied insurance in the future.
  • More importantly, the offense is punishable on conviction, by a maximum of 10 years imprisonment for cases involving an amount over $5,000 or otherwise a maximum of 2 years imprisonment.

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New School Bus Safety Legislation

Over 800,000 young people are transported safely in school buses every day. Unfortunately, accidents still happen. Most occur as students are boarding or leaving the bus when they are crossing the street.

Ontario recently passed legislation that allows police charge the OWNER of any vehicle that illegally passes a stopped school bus. This means it is the owner’s responsibility to make sure everyone using their vehicle is aware of this legislation.

Motorists are required by law to stop for a school bus with its upper reds lights flashing. This applies to city streets, highways or county roads regardless of speed limit or number of lanes. Motorists traveling in both directions must stop. The only exception is on highways separated by a median. In this situation, traffic coming from the opposite direction is not required to stop.

Motorists must not start moving until the red lights have stopped flashing and the bus begins to move. Penalties for not stopping for a school bus can be as high as $2,000 and six demerit points for the first offense. With your help, we can all help keep our roads and our children safe.

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Attention Young Drivers:

New rules limit the number of passengers you can carry
Ontario’s Graduated Licensing System has been a huge success in reducing death and injury among novice drivers. Research shows that teenage drivers are almost three times more likely to be involved in a fatal or serious collision when they are carrying teenage passengers. In fact, the more teenage passengers, the higher the risk.

G2 License Rule changes
To keep Ontario’s roads safer, new restrictions were introduced on September 1, 2005 that limit the number of young passengers a teen-aged G2 driver can carry from midnight to 5 a.m.

  • For the first 6 months, G2 drivers 19 or under can carry only one passenger aged 19 or under.
  • After 6 months, a G2 driver can carry up to three passengers aged 19 or under.

These restrictions do not apply if:

  • The G2 driver is accompanied by a full “G” licensed driver (with at least 4 years driving experience) in the front seat.
  • The passengers are immediate family members.
  • The driver turns 20 years old.
  • The driver earns a full G license.

In addition, G2 drivers must maintain a zero blood alcohol level while driving and never carry more passengers than the number of working seat belts in the vehicle.

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Wow! Over 4 inches of rain in one hour

On August 19, 2005, 103mm (4 inches) of rain fell in a one-hour period in Toronto and parts of Southern Ontario. The $100 million storm caused massive flooding and damage to 5,200 homes and 700 automobiles. A section of Finch Avenue, a four-lane road in North York was completely washed out (see photos, left) and will cost an estimated $5 million to repair. While storms of this magnitude are rare, you can be sure they will occur again at some point in the future.

If you live in an area prone to flooding, be prepared.

  • Clear leaves and other debris from eaves troughs, downspouts and catch basins to allow proper drainage.
  • In extreme downpours, even clear eaves troughs can overflow. Make sure the grading around your home drains away from all exterior walls, window wells and other openings.
  • Keep drinking water, canned food, flashlights, spare batteries, a first aid kit, and a transistor radio in your home.

If you are caught in a storm while driving, watch out for flooded roadways, especially low spots like underpasses. If you encounter a flooded underpass, do not attempt to drive through it – take an alternative route instead.

Severe weather can strike at anytime. A little preparation now will serve you well in an emergency.

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