The Financial Services Commission of Ontario (FSCO) has cracked down on rehabilitation clinics for allegedly defrauding auto insurers.
FSCO said Friday that it has charged five clinics, and 10 individuals affiliated with these clinics, with offences under Ontario’s Insurance Act.
The clinics are charged with one count each of knowingly making false or misleading statements to an auto insurer to obtain payment for goods or services, and engaging in an unfair or deceptive act or practice. And the individuals are also charged with one count each of failing to take reasonable care to prevent the clinics from making false statements, and from engaging in an unfair or deceptive act or practice.
The allegations have not been proven, and the individuals and companies were summonsed to appear in the Ontario Court of Justice on May 24.
“Manipulation and fraud in health care clinics increase auto insurance premiums for all Ontario drivers. FSCO is committed to investigating, prosecuting and rooting out these abuses,” said Philip Howell, CEO and superintendent of FSCO.
Ontario’s Auto Insurance Anti-Fraud Task Force released an interim report in December 2011, and is expected to release a final report by the fall, providing recommendations on the regulation of health clinics, the establishment of a dedicated fraud unit, and a consumer education and engagement strategy. FSCO is also leading a working group that is investigating how the Health Claims for Auto Insurance system could be used to detect and prevent fraud.