Body shop claims Aviva's sting operation broke the law

Facing legal action from an insurance company for fraudulent repairs, a body shop is striking back, claiming mischief and conspiracy

Body shop claims Aviva's sting operation broke the law

Insurance News

By Lyle Adriano

An auto body shop involved in Aviva Canada’s undercover investigation into insurance fraud is striking back at the insurer for secretly recording the business’s employees.

Cos Licursi, the owner of Eugene Collision, appeared in a Toronto court to argue that five of Aviva’s employees, as well as a private investigator hired by the company, should be charged with mischief, conspiracy and interception of private communications.

"Aviva crossed a very serious line when they did this. They took it upon themselves to enter a facility through video cameras, and watch everything that goes on there and listen to conversations," Licursi told CBC News.

In March, Aviva had launched a campaign against insurance fraud. The insurer fitted 10 cars with hidden cameras and microphones, then intentionally damaged by colliding with each other. Each car was properly appraised to determine projected repair costs then left at the side of Toronto highways to simulate real-life collisions. The cars were then towed to 10 different auto body shops in the GTA to determine if the shops would overcharge for the repairs.

One of the shops targeted by the sting operation was Eugene Collision.

Nine of the 10 shops were accused of fraud, Eugene Collision included; Aviva is suing them for overcharging insurance claims.

CBC News reported that in Eugene Collision’s case, the shop overcharged about $360 on a $2,440 repair.

Xavier Navarrete, Licursi’s lawyer, believes that the case has much "wider implications to the public." According to him, if Aviva’s investigators are not held accountable, other insurers might think it would be alright to conduct their own sting operations in places like doctors’ offices or even people’s homes.

 

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