What is meant by “organized” fraud? Are there different types of auto insurance fraud?
Yes, there are three basic types of insurance fraud. The following definitions are from the Ontario government’s Anti-Fraud Task Force report:
Organized Fraud: several participants with different roles within Ontario’s auto insurance system create an organized scheme designed to generate cash flow through a pattern of fraudulent activity;
Premeditated Fraud: a participant within Ontario’s auto insurance system, alone or with others consistently charges insurers for goods or services not provided, or provides and charges for goods and services that are not necessary; the participant is involved in a pattern of fraudulent activity, possibly at the expense of motor vehicle collision victims or possibly with their complicity; and
Opportunistic Fraud: an individual pads the value of his or her auto insurance claims by claiming for benefits or other goods and services that are unnecessary or unrelated to the collision that caused the claim.