Car surfer, staged collision among MPI's Top 5 fraudulent claims of 2019

A staged collision, a car surfer and a drunk driver exposed by surveillance cameras are among Manitoba Public Insurance's Top 5 fraudulent insurance claims of 2019.

Every year, MPI publishes its Top 5 fraud list to raise awareness about costs associated with auto insurance fraud. 

"Many people aren't even aware of what auto insurance fraud looks like," said MPI spokesperson Brian Smiley on CBC Radio Noon Friday.

The list is based on a case's particular circumstances, financial savings to MPI ratepayers, "and investigative excellence in unearthing the fraudsters," said MPI Chief Operating Officer Curtis Wennberg in a media release.

According to Wennberg, the cost of fraud evens out to about $50 yearly per customer.

By the end of November, claim savings totalled more than $10.2 million and nearly 1,200 fraud investigations were closed, according to the release.

Smiley prefers to use the word "bold" to describe some of the things fraudsters are caught doing, adding that in many situations some of the offenders do not realize they are being watched, even by public surveillance cameras.

Many times, peoples' neighbours call in on the TIPS line, or information comes in through law enforcement, Smiley added.

Inmate collects income replacement payments

A Winnipeg man was cut off from receiving income replacement payments after an investigation found he was collecting money while incarcerated in a federal prison.

"When I heard this one, I literally almost fell off my chair," Smiley said. "That was a big one.

"This person was legitimately injured, and they were legitimately entitled to their benefits. But part of our conditions is if a person is incarcerated, their benefits will be terminated."

The man in question was receiving $3,600 per month after suffering serious injuries in a vehicle collision. But after a number of months, MPI had difficulties tracking the man down and communicating with him.

The man sent a lengthy letter to his case manager, explaining he was feeling emotionally distressed and needed a "mental break and holiday." He would be out of touch for several months and staying at a remote cottage in northern Saskatchewan, the man added.

An investigation was soon launched because the man was apparently reluctant to provide contact information of where he would be staying.

The investigation found that the man was actually incarcerated in a federal prison, which automatically made him ineligible to receive any payments from MPI.

Terminating payment resulted in an estimated savings of nearly $200,000, according to MPI.

Drunk driver busted by surveillance footage

A pickup truck found badly damaged in a parking lot was originally claimed to have been stolen and beaten up, but a nearby surveillance camera showed otherwise.

The registered owner of the pickup truck opened a physical damage and theft claim after the vehicle was found badly banged up in an apartment parking lot.

The woman's husband, who was a co-owner of the truck, admitted to an MPI adjuster that he was last to drive the vehicle.

The husband said he drove the truck to a friend's house, where he consumed "several" beers.

He and his friends walked to a bar nearby where more alcohol was consumed.

The husband claimed he chose to leave the truck parked at his friend's house and walked home.

With regards to how the truck ended up damaged, the husband told MPI that someone must have stolen his key fob from his jacket while partying at the bar.

Due to several holes in the husband's story, MPI launched an investigation.

An MPI investigator was able to retrieve surveillance footage from a camera located across the street from the crash scene.

The footage showed the truck being driven erratically into the parking lot, and hitting a number of vehicles. Footage also showed the driver exiting the smashed vehicle, locking it, then staggering away.

The husband withdrew the claim and agreed to pay for damage to the other vehicles, resulting in a claim savings of more than $15,000 to MPI ratepayers, according to the insurance company.

Vehicle's on-board computer proves staged collision

Two Winnipeg men pleaded guilty in court, and were fined $3,000 each, some time during 2019 for filing a false statement.

And they may have gotten away with it too if not for a meddling Honda's on-board computer.

The two men opened claims after their vehicles were involved in a collision at a rural intersection, according to MPI.

A friend of one of the men told an MPI adjuster that she had been driving the Honda, missed a stop sign and hit another vehicle which was travelling through the intersection.

But there were disconnects between the drivers' stories and the damage done to the vehicles, so MPI launched an investigation.

The vehicle was stopped for five seconds before impact, then accelerated and steered into the second vehicle (a Jaguar) but the driver hit the brakes about half a second before impact, according to data taken from the Honda's on-board computer by an MPI training and research technician. 

Physical evidence would support what the data showed, according to MPI.

There was no evidence confirming anyone was sitting in the Jaguar at the time of the collision, they added.

The owner of the Honda later admitted to lying about the collision, and said that the whole thing took place in a large storage yard. MPI said he also admitted money was the motivating factor, because his Honda was in poor condition.

MPI was able to save nearly $70,000 as a result of this investigation.

Surf's up

MPI denied a bodily injury claim after witness and police reports stated the man was injured while car surfing.

"This is very uncommon. We don't see this very many times," Smiley said. "But we will see where people are doing very brazen acts with their vehicles.

"We're not sure why [people do] it."

The man originally claimed he was a victim of auto theft and suffered several injuries while trying to prevent it.

If approved, the man's injury claim would have allowed him to receive income replacement payments.

The man told MPI he hired a driver for his car, and while out running errands the windshield wipers were not working properly.

The man claimed that after he exited the vehicle to fix the wipers, his driver began to drive away.

Somehow, he was able to scramble on top of the trunk and smash in the back window to try and (unsuccessfully) gain entry, he claimed.

The vehicle eventually crashed, throwing the man onto the pavement, resulting in several injuries.

This story was debunked by a number of witness reports stating the man had been standing on top of the speeding vehicle, "hooting," "hollering," "waving his arms" and "laughing," according to MPI.

The man was injured, but MPI does not know the extent of his injuries, Smiley said.

Pain in the neck?

A woman claiming she had debilitating neck pain —  as a result of a car crash — that left her unable to care for herself or children had her benefits terminated after she was seen living large over a two-week period.

People who make bodily injury claims are genuinely injured, Smiley said.

"But somewhere along the line this particular person made the conscious effort to continue collecting income replacement," he said, adding that the woman was "certainly fit and able to go back to work."

The woman opened a claim after she swerved while trying to avoid two deer, and her vehicle rolled into a ditch on a rural road.

It was confirmed that she had sustained a number of injuries, including neck fractures, according to MPI.

The woman was already submitting personal care claims and receiving income replacement payments when she started submitting invoices for childcare expenses.

A call from MPI's insurance fraud TIPS line triggered an investigation into the woman's day-to-day activity.

Over the course of a two-week period, the woman was allegedly observed driving her vehicle, shopping for long periods of time, playing slot machines and pushing a double stroller with her two children — contrary to her statements that she was completely bedridden.

Terminating the woman's benefits resulted in claims savings of $23,000.

MPI is also seeking repayment of nearly $10,000 in personal care expenses paid to the woman.