Manitoba's top 5 auto insurance frauds of 2011

A clumsy arsonist and a not-so-injured trucker were among those who tried, but failed, to defraud Manitoba Public Insurance (MPI) in the past year.

No. 1: Playing with fire

A Winnipeg man agreed to set fire to a vehicle owned by an acquaintance, who wanted his decrepit beater written off for the insurance proceeds.

The arsonist purchased gasoline, poured it into empty, four-litre milk containers then drove the vehicle to an isolated spot and set it on fire. However, he inadvertently spilled gasoline on himself, setting himself on fire. He suffered second-degree burns to 50 per cent of his upper body and spent several days in hospital.

The man subsequently pleaded guilty to one count of arson and received a one-year jail sentence.

The vehicle owner, who withdrew his auto theft claim, received a 15-month conditional sentence after pleading guilty to one count of arson to own property.

No. 2: Not an automatic theft

Faced with mounting repair bills on an aging car, a vehicle owner arranged to have it stolen. The ignition was altered, allowing the vehicle to start for the paid thief.

While driving the car away from the scene, the thief crashed into a large tree, admitting later that he didn’t know how to drive a standard transmission and lost control while shifting gears.

An anonymous call to the MPI TIPS line claimed the vehicle owner had arranged for the theft.

After being found guilty of public mischief and fraud, the vehicle owner was fined $1,200 and order to repay $2,700 in restitution to MPI.

No. 3: No such address

A vehicle was written off after colliding with a deer near Thunder Bay. The vehicle owner provided a Winnipeg address and said he lived in an apartment with his wife, daughter and his sister.

He said he worked in Thunder Bay but insisted he returned to Winnipeg on weekends — a nine-hour, 400-km trip each way.

During the investigation it was discovered that the man’s wife worked in Thunder Bay and her Facebook page had numerous photos and references to their life in Thunder Bay. The manager of the Winnipeg apartment block also had no records of the man residing in the suite.

The claim, valued at $12,000, was denied due to the man’s permanent residency in Thunder Bay.

No. 4: Busy Cabbie

After being injured in a crash, the taxi cab driver began receiving income replacement payments. Over the next several months the cab driver was insistent that he was suffering from extreme pain and unable to return to work.

Thanks to information obtained by an SIU investigator, an investigation commenced. Records obtained from the cab company reported that the driver had worked nearly 150 shifts of varying lengths ─ contrary to the activity logs provided to MPI, stating he was at home recovering.

The cab driver was convicted of Fraud Over $5,000, fined $1,000 and ordered to pay restitution of $8,500 to Manitoba Public Insurance.

No. 5: Not so injured

A semi-trailer driver was passed by a car that threw up snow on his windshield and blocked his vision. The semi-trailer went off the road and into a ditch.

Unable to work due to injuries, the Winnipeg man began collecting income-replacement payments from MPI. After several months away from work, an investigation was opened by MPI investigators due to information received in a tip.

Over the next few months the man was observed, and videotaped, driving various trucks to construction sites. In one instance, he removed heavy tarps off his load of hot asphalt. He was also observed getting into and out of truck cabs with no sign of physical limitations.

He pleaded guilty to fraud and received a fine of $2,000. He was also ordered by a judge to pay restitution of nearly $21,000 to MPI.