False hail claim, off-roading lie round out top 5 MPI fraud cases of 2017

Manitoba Public Insurance's specialteam of sleuths was kept busy this year. The unit closed2,560 investigations which amounted to$6.2 million in savings for Manitoba auto insurance ratepayers.

The insurerreleased its annual "Top Five Frauds" list Thursday, tosharesome of the more colourful stories vehicle owners crafted to back up their insurance claims.

1) 'Drowned' while mudding

MPI said the top fraud case of 2017 included a driver who intentionally plunged a vehicle into the mud for fun. Initially the driver told officials the vehicle sank in a watery ditch after spinning out on a gravel road.

"The investigation told another story: the vehicle had in fact been 'drowned'while four-wheel mudding," a release from MPIread.

"In addition, a web page for a local Jeep club published a photo from a long-weekend rally, showing the vehicle stuck and buried in deep mud."

Investigators also found the vehicle owner took thethe water-logged vehicle to get fixed at a dealership before filing the claim. Dealership staff said the removal ofwater from engine oil wouldn't be covered by insurance.

The owner withdrew theclaim after MPIpresented them "with all the facts." The investigation saved Manitoba ratepayers an estimated $36,000, MPIsaid.

"If claimants withdraw their claim, MPI typically does not pursue legal action," MPI spokesperson Brian Smiley wrote in an email. "Legal action is often lengthy, and withdraw mitigates our losses/costs."

2) Hail damage? Not so much.

Ratepayers were saved another $6,000 when MPIdenied a hail damage claim following an investigation.

The owner saidthe vehicle was parked outside when a hail dump from a severe storm left 200 dents. Upon closer inspection, MPI staff determined Mother Nature wasn't to blame. Atool or object caused the dents, MPIsaid.

That owner, too, withdrew thedamage claim.

3) Fender bender

In third place, a driver filed a claim MPI said didn't initially show signs of fraud. Anovice driver admitted to getting into a fender bender whileaccompanied by a supervising driver during the crash.

But an MPIemployee went sleuthing and found a classified ad in a foreign-language newspaper seeking a "supervising driver." Investigators connected the dots and linked the ad to the novice driver, MPI said.

The driver recanted andadmitted to not having a supervising driver present at the time of the crash. Theclaim was withdrawn. The driver also signed a $2,500 promissory note to cover the cost of repairs to the vehicle.

4) Inconveniently placed camera

In the fraud case deemed fourth most creative of 2017, MPI said an owner claimed to havelent thevehicle to a friend, whosmacked into a cement pole after narrowly missing an animal on the road.

Video from a closed-circuit security camera angled right above the crash site revealed a different chain of events.

"The video clearly showed the vehicle driven at a high speed directly into the cement pole with no animal anywhere to be seen," MPIwrote in a statement.

"The video also proved the driver was not a friend, but in fact, the owner of the vehicle."

Theowner later repaid MPI the $7,000 worth of repairs that were done to the vehicle.

5) Injured but pumping iron with ease

After months off work from injuries sustained during a crash, MPI cut theincome replacement payments it was doling out to onevehicle owner. Turns out the person recoveredand happened to be fit enough to work and work out but continued to receive payments.

"As the months passed, suspicions arose about how injured the claimant really was," MPI stated.

"An extensive investigation soon discovered the claimant led a very active life, including making regular trips to the gym where they were seen lifting heavy amounts of weights."

Medical experts reviewed the case alongside insurance officials, and the group decided the claimant was able to return to work. MPI terminated theincome replacement payments and saved an estimated $55,000.

In total, MPI saved about $100,000 on these five claims alone.