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Insurance fraud occurs when someone makes an insurance claim that is completely false or files a claim for more than the value of the goods actually lost, stolen or destroyed. Fraudulent claims affect the cost of everyone's insurance. The Canadian Coalition Against Insurance Fraud estimates that $1.3 billion worth of insurance claims that are paid in Canada every year are fraudulent. This works out to 10- 15% of every dollar you pay for insurance. If someone you know is committing insurance fraud on a home, car or business policy, you can report it to Crime Stoppers. Crime Stoppers is an international non- profit civilian program that assists police in solving crimes through tips reported by ordinary citizens who have knowledge or suspicion that crime has taken place. If your tip helps the police or an insurance company catch an insurance fraud, you may be eligible for a cash reward. Your call will remain completely anonymous. The Insurance Brokers Association of Ontario has supported Crime Stoppers for many years. An innovative alliance between Crime Stoppers and the Canadian Coalition Against Insurance Fraud, which began in Ontario in 1995, to report insurance fraud tips has resulted in 51 arrests, 49 denied claims and has prevented the payment of more than $1.2 million worth of fraudulent home, car and business insurance claims across Canada in the past 5 years. "The message of the Crime Stoppers program is They Cheat /You Pay," said Maid Mary Lou O'Reilly, Executive Director of the Coalition. "With the level of support we've seen for our partnership with Crime Stoppers, we know that Canadians understand this message and they no longer turn the other way when a neighbour brags about 'ripping off the insurance company.' They know what it's costing all of us." It is important for everyone to help prevent insurance fraud and in doing so, help reduce the premiums we pay. | ||
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| At 4 a. m. one morning, Dave and his family were awakened by their smoke alarms. "I've had emergency training, but when I crawled on my hands and knees and opened the bedroom door, I was absolutely amazed at the clouds of smoke in my home. If it hadn't been for the smoke detectors, none of us would be here today." Dave and his family were fortunate, they were able to crawl to the door, get out of the house and call the fire department. The fire in Dave's home was caused by a crack in the electrical cable coming into his home, which short- circuited and the arcing caused the subsequent fire, which began at the electrical box and moved through the false ceiling of his basement's recreation room. Dave and his family escaped in their pyjamas. At this point, it is important to note that Dave had done all the correct things with his insurance. He had filled out the appropriate forms and was insured to what he believed was to value - $150,000 on his home and $110,000 on his contents. Because the damage to the basement weakened the foundation, Dave's insurer paid $170,000 to replace the dwelling since he had the replacement value clause in his policy. Contents were an entirely different matter. Dave said the most important thing you have to remember, is that whatever value you insure for includes sales tax. Therefore, he suggests that you remember whatever amount of insurance you have on contents, the limit is approximately 87 per cent of that value since sales tax is required to be paid. Most people would admit that $110,000 on contents and $150,000 on one's home is more than adequate - not according to Dave. He remembers some of the immediate out- of- pocket expenses for which he was not prepared - two pairs of glasses, three sets of contact lenses, dental retainers and prescription drugs. He also found it surprising that he had to hire a locksmith to come and cut new keys for his cars, which had to be broken into and pushed out of the way for the fire department. Other things, such as identification, licenses, credit cards, and passports had to be replaced. They had no keys, no place to live, no identification and no credit cards. His insurer responded within hours with a cheque for $3,000 to tide them over while they found temporary living quarters and shopped for clothes. Dave is not wealthy, does not have extravagant tastes, but he does insist that insurance on contents be increased to adequately cover his possessions. May we suggest that you closely review the value of all your contents including personal items, a partial list of which has been mentioned above, to ensure that in the event of accidental loss, your insurance will be in a position to replace all your goods. Dave's comments were that the least of his worries were things like jewellery - he was happy to get out alive. As a note, when Dave's house was re- built, he did insure it and his contents fully to value and within a few months of moving back in, thieves in broad daylight entered his home and stole most of his new electronic equipment, stereo, VCR, TV including some items of jewellery that he had replaced for his wife. Dave's comment however, is if anyone wants to hear why they should insure to value, he'd be only too happy to tell them. | ||
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| As you've no doubt recently experienced or heard, Canadians are driving their mouses to online shopping sites in greater numbers. Consumers are looking, comparing and buying stuff for a number of reasons which include: saving time, perceived and real savings, convenience and thrill. If you have yet to conduct a purchase over the internet, chances are that you will in the near future, so the following is a little something for you to consider. There are estimates that online transactions could top $40 billion by 2002. With this much e-commerce going on, there is a real fear that individuals may be giving up sensitive information they shouldn't. Security and privacy issues can be confusing and difficult to understand. When was the last time you went to a site to review these policies of the company you were thinking about transacting business with? Was there a privacy policy at all? Did you read it? Before you blindly enter a site, here are some questions you may want to ask yourself: Is knowing that the information you supply may be shared with other companies important to you? Can you change your mind at a later date about the information you supplied? Does the site use "cookies" or other ways to track your behaviour? Will the site work with cookies disabled? How does the company protect the information you have supplied them? Does the company provide a question and answer section on their site giving you this level of comfort? Companies wanting your business should provide you the answers you require at well-constructed web sites in helpful and easy to understand language. But remember, it's up to you to do the research. Be informed before you transact! For additional helpful information try the Ontario Privacy Commissioner and go to the "If you wanted to know" section. | ||
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| When it comes to insurance matters for you, your family or your business, you can count on us for guidance and informed advice. With constant change touching all aspects of our lives, it's reassuring to have someone you can trust. We continually upgrade our professional knowledge through seminars and courses. We put service and attention to detail first on our list - and yours. We answer your insurance questions. We provide the best possible coverage at the best possible price. And, we work for your best interests every day of the year. From choosing a policy to assisting you with your claim, we're proud to be your insurance broker. Thank you. |