on August 31, 2013 by admin in Insurance Industry, Comments (0)

The Insurance industry says you can blame fraud for costly auto insurance

If you think you’re paying a lot for auto insurance, you’re right.

Ontario drivers pay the highest rates in the country.

But, Ontario’s minority Liberal government, facing pressure from the NDP, announced a 15% rate drop over the next two years.

“We need to take action, and we’re going to be fighting for those consumers right across our province.” Ontario’s Finance Minister Charles Sousa says.

But, not so fast, say some in the insurance industry, unsure if they can deliver a rate drop.

“I couldn’t tell you but I don’t think we’re anywhere near, I don’t think we’re anywhere near 15%.” Ralph Palumbo of Insurance Bureau of Canada says.

Insurance industry leaders say fraud is the main reason why rates are high.

Just ask Justus Jurica, a Kitchener-based private investigator.  The bulk of his business is catching insurance cheaters.

“Insurance adjusters that work for the insurance companies will call me because they have reason to believe that someone is scamming the system.”  Jurica says.

He was hired to follow a claimant, who said he’d suffered a catastrophic car accident preventing him from going to work, or doing anything around his house.

Parked a couple of blocks away, using a high-powered camera, Jurica records him twisting and yanking a tree out of his yard.

“The insurance company couldn’t believe it.  They couldn’t believe that he had a team of lawyers backing him on his inability to do anything, but then be so blatant.” Jurica says of the video footage.

What happened to the claimant?  And, are you likely to see that 15% drop on your insurance premiums?

Find out in the full story Sunday night at 6:30 on ProvinceWide with Daiene Vernile.

Article source: http://kitchener.ctvnews.ca/the-insurance-industry-says-you-can-blame-fraud-for-costly-auto-insurance-1.1435118

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