The insurance industry is looking at ways to reduce the number of fraudulent claims in the wake of an undercover investigation which revealed that 50 per cent of claims in the auto repair business in Ontario were fraudulent.
Gord Rasbach of Aviva has no reason to believe that anything is different in Newfoundland and Labrador. In fact, the insurance industry’s auto repair bills have gone up by 47 per cent in Newfoundland and Labrador, partly because of technology but also because non-accredited companies are being selected to do the repairs.
Rasbach wants to see people who use companies which are on their approved list getting a rate reduction.
He says having preferred shops gives them the right to inspect and audit them, which they can’t do with other shops. All shops in the undercover investigation were non-accredited.