April 2005 Regional News Releases
Abbotsford family ordered to pay ICBC — April 12
Abbotsford family ordered to pay ICBC — April 12
Staged collision leads to claim in fraud
ICBC's zero tolerance toward fraud continues to pay off. The BC Supreme Court has assessed $126,000 in punitive damages and costs against the Sharma family of Abbotsford related to a staged collision in 1996.
In a 2003 trial, the court concluded that Deepak Kumar Sharma, son of Sadhu and Suhag Sharma, and brother of Parveen Sharma, conspired with family members to stage the two-vehicle crash at the intersection of Marshall and Beaver Roads in Abbotsford. ICBC then pursued a civil action for fraud against the Sharma family. A jury was scheduled to assess punitive damages against the family members on March 7, 2005. The family agreed to avoid the expense of a second trial and pay ICBC $126,000 in settlement of the fraud claim. Mr Justice Tysoe approved the settlement.
“ICBC has a zero tolerance policy for fraudulent claims,” said Mark Withenshaw, ICBC vice president of loss management. “It is not acceptable for ICBC to sit back and simply pass the cost of fraud onto our customers.”
Deepak Sharma bought an older Honda Prelude several days prior to the collision and registered it in a friend's name. On the night of June 18, 1996, the friend waited at the predetermined intersection for Sharma and his family to arrive and then deliberately drove the Honda Prelude into the side of the Sharmas' vehicle. The four Sharma family members waited in their vehicle until a witness, police and ambulance attendants arrived. They all went to the hospital, hired lawyers and filed injury claims with ICBC.
ICBC received information indicating that the Sharma family may be involved in a fraudulent claim. The adjuster took the information seriously and appointed engineers and others to investigate. Eventually the investigation turned up enough evidence to prove this was a staged collision set up for the purpose of defrauding ICBC.
“Fraud is not a victimless crime,” said Withenshaw. “The cost is paid by honest customers in the form of higher premiums.” ICBC estimates that fraud costs each of ICBC's 2.8 million policyholders $150 per year.
Anyone with information on a suspicious, exaggerated or fraudulent claim is encouraged to phone the ICBC Tips Line at 604-661-6844.
For more information contact:Doug Henderson
604-982-1332
