ICBC says fraud program saved $70 million in claims

B.C.’s public auto insurer says its program to uncover fraudulent claims resulted in $70 million in savings in 2004.The Insurance Corp. of B.C. (ICBC) says these savings include denied claims, money recovered and its estimate of savings generated through fraud prevention. In total, 84 criminal charges were laid against 56 people based on ICBC investigations last year, with 61 convictions obtained thus far. But ICBC is also using the civil courts to target alleged fraudsters, with civil suits aimed at recovering fraudulent claims and billing, as well as punitive damages.With the Canadian Coalition Against Insurance Fraud estimating 15% of claims are either fraudulent or exaggerated, ICBC estimates this problem costs its policyholders $150 per year each.With the release of 2004 fraud data, ICBC also highlighted examples of real-life frauds from its case files. These included a woman who claimed injury as a result of a collision, but who had made claims on an Internet chat room for motorcycle enthusiasts which contradicted her story to adjusters. Another case involved a dentist who allegedly supported a claimant’s story of tooth damage resulting from a collision investigation revealed the claimant’s teeth had been damaged prior to the accident and in the end the dentist was ordered to pay ICBC $25,000 following a civil suit.