They say truth is stranger than fiction -- look no further than Manitoba Public Insurance's top five frauds for 2007.
Today, the corporation released its annual list of top fraud cases that passed through the courts over the last year, though the names of the guilty parties have been omitted to prevent possible embarrassment to family members.
By uncovering these and other attempts at fraud, the corporation's Special Investigations Unit (SIU) has saved motorists nearly $40 million over the last three years in terms of money recovered and fraudulent claims denied, according to MPI.
No. 1: Key to the Crime - The claimant told MPI his 2003 Hyundai had been stolen. Since the vehicle was equipped with an immobilizer and the claimant claimed to have both keys in his possession, the adjuster notified the SIU.
When the vehicle owner produced the keys, only one turned out to have a transponder, which is necessary to start a vehicle with an immobilizer. The other key was a copy containing no transponder. The insured claimed the copy would start the vehicle, but that was impossible.
The vehicle was later recovered with no sign of forced entry or ignition damage.
At the trial it was established the claimant, not wanting to keep up payments on the vehicle, had given the missing transponder key to a third party, with instructions to steal the vehicle. The claimant was convicted of fraud over $5,000 and fined a total of $4,027.
No. 2: Enough Rope to Hang Himself - The claimant told his adjuster he had accidentally driven his truck into the river.
When a tow-truck operator was hired to recover the Jeep, he discovered the owner had forgotten to remove the rope he had tied between his Jeep and a nearby tree. The rope had allowed the claimant to escape the vehicle without being swept away by the current.
He pled guilty to making a false statement and was fined $1,000. He was also not paid for the loss of his Jeep.
No. 3: Stealing an Unstealable Truck - The claimant reported his 2003 Dodge quad cab pickup truck had been stolen from a St. James bar parking lot. The vehicle was soon recovered in rural Manitoba completely destroyed by fire.
The truck had been equipped with an immobilizer, and all the keys were accounted for. However, a set of tracks confirmed that the vehicle had been driven to the spot where it was found burned.
The investigation revealed that the vehicle owner was having great difficulty making his $870 per month lease payments on the vehicle. The vehicle owner denied any involvement in the theft.
However, just before jury selection at trial, the claimant had a change of heart and pled guilty to fraud over $5,000. He was fined $2,602 and ordered to make full restitution of the amount Manitoba Public Insurance had paid to Chrysler Financial: a whopping $39,373.56.
No. 4: Truth or Consequences - The claimant, who only held a beginner's driver's licence, was involved in a collision in Winnipeg. When she reported the claim, she told her adjuster that a supervising passenger was with her at the time.
As part of the routine investigation, the adjuster contacted the alleged supervising passenger, who denied being in the vehicle at the time of the collision.
The claimant was convicted of making a false statement and driving without a licence, and fined $200.
No. 5: Didn't Learn the First Time - In 2004 a man was convicted of filing a false statement with MPI and fined $500. So, when he opened a new injury claim following a motorcycle crash, his file was routinely forwarded to the SIU.
The man claimed a foot injury suffered in the crash had left him unable to work. Disability payments soon followed. However, some suspicious behaviour prompted an investigation, which revealed the man had, in fact, returned to his job as a funeral director while still collecting disability payments.
Earlier this month at Court of Queen's Bench, the man pled guilty to making a false statement and was fined $3,500. He also repaid $10,000 in disability payments to MPI.
Anyone knowing someone who is involved in auto insurance fraud is encouraged to call the Manitoba Public Insurance TIPS Line at 985-8477 or toll-free at 1-877-985-8477.
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