The Insurance Council of BC (ICBC) is currently investigating extensive fraud related to bridge tolls allegedly perpetrated by numerous brokers, and has confirmed that while the scheme is widespread, there is no evidence to suggest that it is a systemic issue.
Over 100 licensed brokers are up for review after their names came up in an ICBC investigation into allegations that several brokers have submitted falsified bridge payment receipt information to help drivers avoid paying fees. The council launched its investigation back in 2015 after it discovered false receipt numbers.
CBC reported that, to date, two brokers and 27 broker offices have been fined for committing the fraud. One of the brokers charged was served a six-month suspension.
Search and compare product listings for insurance against Fraud from specialty market providers here
ICBC has revealed that it will take months to review each broker on the list.
Gerald Matier, ICBC executive director, said on Wednesday that he has never seen so many brokers being investigated for the same type of fraud in his 25-year career.
“This is a first — the first and hopefully the last,” he stated.
The investigation found that some brokers have inputted fake receipt numbers into the Autoplan system to allow their clients to either renew their licenses or car insurance – typically, drivers with outstanding tolls from the Port Mann or Golden Ears bridges are blocked from accomplishing either of the actions.
Valid receipt numbers are composed of certain combinations of numbers and letters, but some of the falsified data inputted by the fraudulent brokers seems to get around this restriction. In one case, a broker managed to submit a falsified number through the system by adding a two-letter prefix.
However, Matier believes that the fraud issue, despite being widespread, is not a systemic problem.
“[The] Council did a lengthy investigation to see if these were all one-offs, or whether it was being driven by particular insurance agencies where they had directed their staff to do this,” he explained. “We had no evidence of any agency or senior manager with an agency that had given that kind of direction.
The executive director mused that the idea to commit the fraud was likely passed around by word of mouth. Matier also said that the council believes that the duplicitous practice was mostly for client convenience.
“I think these were, for the most part, simply in most cases to accommodate a client so they could proceed with their insurance transaction,” he mentioned.
Related stories:
ICBC penalizes brokers for helping motorists avoid toll fees
Insurance Council of BC seeks a new Executive Director
%20(1).jpg)
