Motorcyclists and drivers — April 29

Use extra caution this summer

With the arrival of summer weather conditions in most regions of the province this month, it means more motorists and more types of vehicles will be on the road-including motorcycles. It also means more risk of serious injury or death for motorcyclists. Almost 80 per cent of the yearly injuries and deaths involving motorcycles take place from May through September, according to police-reported collision data.

“Driving safely and using extra caution is important for all road users- including motorcyclists— As we head into these busy summer months on BC roads,” points out Greg Wirch, ICBC provincial loss prevention program manager. “Severe crashes often occur at intersections. We're asking motorists to be extra careful when making turns and motorcyclists to slow down and be more visible.”

Motorcycles are over-represented in fatal and injury crash incidents. In 2003, motorcycles represented just over one per cent of all insured vehicles, however motorcyclists accounted for about seven per cent of all fatal victims.

Motorcycles are more likely to be involved in a fatal or injury crash incident than any other motorized vehicle type.

“Like cyclists and pedestrians, motorcyclists are vulnerable road users-they don't have air bags, seatbelts or bumpers to protect them,” Wirch adds. “Also, it's often difficult for motorists to judge the proper distance when small vehicles such as motorcycles are approaching, particularly when turning left. Drivers and motorcyclists should be looking out for each other at all times.”

Safety tips for other motorists:

• Be extra cautious for motorcyclists, especially when turning at intersections.
• Actively look for motorcyclists in traffic. Remember motorcycles are small and often difficult to see in the mix of traffic.
• Make eye contact with the rider whenever possible.

Safety tips for motorcyclists:

• Remember riding at an unsafe speed puts you at greater risk of crash and injury.
• Slow down when approaching intersections.
• Never assume other motorists see you.
• Wear bright and reflective clothing. Add extra reflective material to your clothing or wear a reflective vest.

Backgrounder

• In BC in 2003, there were approximately 2,000 crash incidents reported to ICBC involving motorcycles. Of that total there were 33 police-reported fatal crashes and 1,000 ICBC reported crashes involving an injury.
• Single-vehicle motorcycle crashes tend to occur in rural undeveloped areas, at higher speeds, and at curves where the driver loses control and leaves the roadway.
• Multi-vehicle motorcycle involved crashes tend to occur in urban areas, at lower speeds and at intersections where the driver of the other vehicle violates a motorcyclist's right of way or fails to notice the motorcyclist.
• In 2003, motorcycles represented about 1.3 per cent of all insured vehicles, however motorcyclists accounted for approximately 7.1 per cent of all fatal victims.
• Motorcycles are 15 times more likely to be involved in a fatal crash incident, and three times more likely to be involved in an injury crash incident than any other motorized vehicle type.
  

For more information contact:
Doug Henderson
604-982-1332

For more motorcycle and driver safety tips, go to the Sharing the Road with Motorcycles Info Update on icbc.com.

ICBC seeks damages, recovery of costs — April 13

Insurer alleges crashes were staged for financial benefit

ICBC has filed two statements of claim to recover claims and investigation costs, plus damages, as a result of two separate alleged staged accident cases. The statements of claim were filed today in British Columbia Supreme Court.

"Combatting fraud means low and stable rates for ICBC customers,” said Mark Withenshaw, ICBC vice president of loss management. “ICBC seeks to identify potential fraud before the claim is paid, but we will also pursue fraudulent claims through civil lawsuits and criminal prosecutions.”

One of the suits, involving six people, arises from a crash in June of 1996. One vehicle rear-ended another at a Vancouver intersection. Occupants in both vehicles claimed soft tissue injuries and over $34,000 was paid in total.

However, as a result of a further investigation, ICBC alleges that parties from the different vehicles agreed with each other prior to the alleged accident to fraudulently stage the collision and make false claims for personal inuries and vehicle repairs.

The second case involves six people and three alleged staged crashes that took place in May 2000, June 2000 and February 2002. ICBC alleges that participants would conspire to use a stolen vehicle in a collision with another participant's vehicle. The stolen vehicle would then be abandoned, to create the impression that the second vehicle's occupants were innocent victims of unidentified car thieves. Those occupants would then make claims for fictitious injuries and for repairs to their vehicle.

Over $96,000 was paid out for claims related to those incidents before investigators uncovered a pattern that indicated the alleged fraud.

“We will not sit back and let the cost of fraudulent claims be paid by the honest customers in the form of higher premiums,” said Withenshaw.

B.C. motorists saved more than $70 million in 2004 thanks to ICBC anti-fraud programs, according to year-end figures. The figure is based on the estimated value of fraudulent claims which were denied, money recovered and savings generated through fraud prevention.

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, see Statements of Claim:

Vancouver Registry No. S052001
Defendants: Van Chien Nguyen, Vancouver; My Ngoc Quan, Vancouver; Xem Van Nguyen, Richmond; Xinh Thi Pham, Richmond; Quang Quoc Dao, Toronto, ON; Ha Thi Nguyen, Toronto, ON.

Vancouver Registry No. S052000
Defendants: Sergei Shapar, Richmond Hill, ON; Natalia Ulianova, Toronto, ON; Elena Savenkova, Barrie, ON; Denis Krasnogolov, Richmond; Ivgeni Statkewich, Port Coquitlam; Maksym Shalin, Toronto, ON.

For more information contact:
Doug Henderson
604-982-1332

ICBC's anti-fraud programs show results — April 5

B.C. motorists saved more than $70 million in 2004 thanks to ICBC anti-fraud programs, according to year-end figures. The figure is based on the estimated value of fraudulent claims which were denied, money recovered and savings generated through fraud prevention.

"It is not acceptable to ICBC to sit back and simply pass the cost of fraud onto our customers,” said Mark Withenshaw, ICBC vice president of loss management. “We invest in fraud prevention because less fraud helps keep rates low and stable for our customers.”

ICBC's anti-fraud efforts led to 84 criminal charges against 56 people last year, with 61 convictions being obtained to date.

ICBC also continues to focus on filing civil suits to recover money paid out on fraudulent claims and billings. The use of civil litigation also allows ICBC to ask the courts to impose punitive damages against those found guilty of fraud.

The Canadian Coalition Against Insurance Fraud estimates that up to 15 per cent of insurance claims are either exaggerated or fraudulent. ICBC estimates that fraud costs each of ICBC's 2.8 million policyholders $150 per year.

Much of the success in catching people trying to defraud ICBC is based on information the Corporation receives through its anonymous tip line. Anyone with information on a suspicious, exaggerated or fraudulent claim is encouraged to phone 604-661-6844 or 1-800-661-6844.

Insurance fraud can appear in many ways, ranging from organized gangs that stage fake crashes to individuals who lie about their injuries. Here are three actual stories from ICBC's fraud files.

Motorcyclist wipe out caught on the net

“Pam” had filed an injury claim with ICBC as the result of collision she was involved in. The Claims Adjuster working on her file saw some inconsistencies in “Pam's” story and brought in investigators to take a closer look. Knowing she was an avid motorcycle rider, they searched the internet and the search found over 1000 postings on an internet chat room designed for motorcycle enthusiasts.

The content of her messages contradicted much of what she told her adjuster about her injuries and disabilities.

The investigation led to a large reduction in what would have been a fairly significant injury claim.

The Tooth Fairy Delivers

“John” claimed his teeth were damaged in a motor vehicle collision. His dentist supported the claim and submitted a $1,500 estimate to ICBC.

A claims adjuster noticed the dentist's clinical records were not in chronological order, so she called in investigators.

It is alleged that the dentist confirmed the injury was motor vehicle related and suggested it was his assistant who made the clinical record mistakes. A follow up interview with the assistant proved invaluable as she confirmed the customer's teeth were damaged prior to the collision.

ICBC denied the claim. The customer sued. After two days of trial, the dentist was discredited and the customer abandoned his suit.

A lawsuit was launched against the dentist and the dentist had to pay ICBC over $25,000.

False declaration leads to costly breach

When “Jim” moved to BC he provided ICBC with a letter outlining his insurance history in order to obtain a discount on his insurance policy. It was later revealed that the discount letter was false. In fact, it was obtained from a company that had nothing to do with automobile insurance.

“Jim” had presented the authentic looking document to ICBC and saved money on his insurance. Six months later one of “Jim's” family members struck a pedestrian resulting in serious injuries.

The pedestrian's file settled for about $1 million.

Because of the false letter, “Jim” is in breach of his policy of insurance with ICBC, and therefore ICBC will be looking to recover the entire settlement cost from him. While the false letter may have temporarily saved “Jim” money on his policy, the misrepresentation may cost him far more.

For more information contact:
Doug Henderson
604-982-1332

Copyright © 2008 ICBC - Insurance Corporation of British Columbia