Company goes to court to fight insurance fraud

GUELPH – As part of its ongoing efforts to combat auto insurance fraud in Ontario, The Co-operators announced July 29 that it has filed a statement of claim with the Ontario Superior Court of Justice against five Toronto-area assessment clinics.

Co-operators General Insurance Company and its subsidiary, COSECO Insurance Company are seeking $7-million in damages, following more than a year of investigation. The statement of claim details several alleged abuses related to assessments and treatments of injured auto insurance claimants by defendants:

– 2171713 Ontario Inc.;

– Century Diagnostic & Assessment Centre Inc.;

– Fairview Assessment Centre Inc.;

– M.D. Consult Inc. o/a Toronto Regional Medical Assessment Centre and Danny Grossi; and

– Pacific Assessment Centre Inc.

The claims against them include:

– unauthorized use of regulated health practitioners’ electronic signatures on documents such as assessments and treatment plans;

– submitting requests for assessments and treatment that clients are not aware of, which were unnecessary or never rendered, or both;

– submitting invoices for payment related to assistive devices that were unnecessary  or never purchased, or both.

The Ontario government has recently taken additional steps to help in the fight against insurance fraud, and The Co-operators implemented new procedures and practices to detect fraudulent activity during the claims process. The company has also committed additional resources and expanded its Special Investigations Unit to deter fraudulent activity.

The Co-opeartors said in a press release it will continue to work to bring those responsible to justice to ensure that clients’ premium dollars are going towards those injured in accidents, and not for criminal activity.

Ontario, and in particular the Greater Toronto Area, has long been a North American hotbed of fraud. It is estimated that fraud and abuse account for $1.3-billion of the $9-billion that Ontario drivers pay in premiums every year. Ontario offers the richest benefits and has the most expensive auto insurance in Canada.

 

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