SGI saves over $7M in payments by uncovering fake claims

A fake diamond ring receipt and false auto damage claims are some of the fraudulent claims uncovered by SGI’s special investigation unit during 2017.

The fake diamond ring receipt was discovered when a man made a theft claim to SGI Canada.

Investigators said the $25,000 receipt he submitted seemed suspicious – although the jewelry store was legitimate, a zip code was on the receipt, not a postal code.

The receipt was traced to an online receipt generator, which SGI said matched the format of the submitted receipt in the claim – except that the American site would not accept the six-character Canadian postal code.

SGI denied the entire theft claim after checking with the jewelry store to confirm the receipt was fake.

Penny McCune, the executive vice-president and chief operating officer of the auto fund, said this was one of many fraudulent claims caught by the unit that saved the insurer over $7 million.

“There’s this misconception that it’s a victimless crime and if it hurts anyone, it’s only affecting a big corporation,” McCune said in a statement.

“But insurance fraud means higher insurance rates for you, your family, friends and neighbours.”

Other fake claims caught by SGI include claims for damaged vehicles due to collisions or fire.

In one case, a vehicle’s event data recorder told a different story then what was claimed by the owner.

The owner said her parked vehicle was damaged in a hit and run but the recorder showed the vehicle was in motion when a collision occurred – and on a different day then what was in the claim.

Other fraudulent claims have been uncovered due to video surveillance or from anonymous tips.

SGI officials said people making false or exaggerated insurance claims jeopardizes their coverage and could result in criminal charges being laid.

Anyone with information about potential insurance fraud is asked to contact the SGI’s special investigation unit at siu@sgi.sk.ca or 1-800-667-8015 ext. 6887.