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Insurance Fraud in Edmonton, Canada refers to acts committed with the intent to fraudulently obtain payment from an insurer. It can take two forms: hard fraud, where someone deliberately fabricates a claim or an incident, and soft fraud, where a legitimate claim is exaggerated for larger payouts. These fraudulent acts are considered serious crimes under the Canadian Criminal Code with penalties including heavy fines, imprisonment, or both.
If you are accused, or being investigated, for insurance fraud, it is imperative to seek legal counsel. A professional who understands the complexity of the Insurance Fraud law will guide you through the legal process and help you protect your rights. Even for those who suspect they are victims of insurance fraud or are involved in faultless accidents, a lawyer could provide assistance in relocating assets, advising potential legal consequences, and preparing a strong defense strategy.
The key aspect of local laws relevant to Insurance Fraud in Edmonton, Canada is embedded within the Criminal Code of Canada. Section 380(1) of the code states that anyone found guilty of fraud exceeding $5,000 can face up to 14 years of imprisonment. On the other hand, if the amount defrauded is less than $5,000, the maximum penalty is 2 years jail time. Furthermore, Alberta's Insurance Act also provides for civil remedies to instances of fraud, allowing insurance companies to rescind policies if misrepresentation or fraud is detected.
Insurance Fraud can take many forms from inflating the actual cost of repair for a claim, fabricating a claim entirely, to staging accident scenes. It can be committed by claimants, professionals who provide services, and even within insurance companies.
If found guilty, the individual could face heavy penalties including fines, imprisonment, or both. The severity of the penalty is contingent on the amount defrauded and the severity of the fraudulent act.
If you believe you are a victim of Insurance Fraud, it is advisable to firstly compile all relevant documentation and, if possible, gather any form of evidence. Report your suspicion to your insurance company and law enforcement officials. You may also want to seek legal counsel to discuss your situation.
Although insurance companies can launch investigations into potential fraudulent activity, they cannot impose any sanctions or penalties against policyholders without substantial corroborative evidence.
'Bad Faith' is a legal term used when an insurance company does not deal truthfully and fairly with policyholders. It may include denying a claim without a legitimate reason, delaying payments, or even accusing a policyholder of fraud without substantial proof.
The Insurance Bureau of Canada (IBC) is a national industry association that provides help and information for victims and alleged fraudsters. It can be a great starting point for those seeking assistance and advice regarding insurance practices, including insurance fraud.
If you find yourself in need of legal assistance related to Insurance Fraud, your next steps should be to gather all relevant information and seek legal counsel. Contact a credible law firm in Edmonton that specializes in Insurance Fraud, provide them with all necessary details, and work together to formulate a suitable legal strategy.
