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Special SGI unit saves company millions of dollars in fraudulent claims

SGI said insurance fraud costs the insurance industry millions of dollars each year, and customers are stuck with higher premiums due to these losses. File / Global News

A false hit-and-run claim and purposely setting a truck on fire are two of the top fraudulent claims made to SGI during 2018.

In the first claim, a woman said her vehicle was stolen and then involved in a hit-and-run while she was out of town.

However, an eyewitness and surveillance video placed the woman in the passenger seat of the vehicle.

She admitted this to members of SGI’s special investigation unit (SIU) when they became involved in the claim, and said a friend who was not licensed was behind the wheel.

SGI said they saved $60,000 when the claim was denied.

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It is one example of SIU investigating suspicious claims and saving SGI millions of dollars yearly, said Penny McCune, executive vice-president and chief operating officer of the Auto Fund.

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“SGI, like any insurance company, is focused on loss prevention and reduction – this includes crime and fraud prevention,” McCune said in a statement.

“To that end, the SIU is concerned with finding the truth and getting our customers the benefits they’re entitled to. Insurance fraud means higher rates for everyone.”

In the other example, a claim was made after a truck was destroyed by fire.

The owner claimed the truck was on fire after being left to warm up on a cold day.

SUI said evidence was found that multiple fires had been set in the vehicle and gas-soaked material was found.

Investigators said surveillance video showed a person approaching the truck, opening doors, then going back indoors.

The video then shows snow melting off the truck’s roof, and the same person then returning to the truck moments later.

The investigation saved SGI $28,000 when the claim was denied. The truck owner was charged with arson for a fraudulent purpose.

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SGI said insurance fraud costs the insurance industry millions of dollars each year, and customers are stuck with higher premiums due to these losses.

It is estimated SUI saved SGI $5.6 million in payouts during 2018.

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