Fraud charges laid against Toronto towing owner/operator

Kam's Towing & Recovery alleged to have made false claims to insurer

TORONTO, Nov. 18, 2014 /CNW/ - "Fraud continues to hurt the insurance system, particularly in Ontario," states Gordon Rasbach, Vice President of Aviva Canada's Anti-Fraud unit. "Until we start seeing those trying to steal from the system hit with more serious consequences, insurance prices will continue to be higher than in other provinces."

Aviva Canada, one of the country's leading providers of property and casualty insurance, is applauding the Toronto Police Service for investigating the alleged crime and bringing charges against the accused.

On June 27, 2014, a dump truck, registered to a commercial business insured by Aviva Canada was involved in a collision with two other vehicles in the west end of Toronto, Ontario. Ontario Provincial Police attended the collision scene and directed all drivers involved to a nearby Collision Reporting Centre. The collision damage claim made to Aviva Canada included an invoice for $4,250.00, presented by Kam's Towing & Recovery, 50 Shaft Road, Toronto, Ontario. The invoice detailed costs for attendance of a heavy tow truck at the collision scene, clean-up of roadway debris and removal of the dump truck.

Aviva Canada investigated the circumstances related to the towing services. Following witness interviews and expert examination of the collision damage, it was determined that the towing services being claimed by Kam's Towing & Recovery were completely fictitious. Aviva presented findings of the investigation to Toronto Police Service detectives.

On November 13, 2014, police investigated and charged Jainauth Sounauth, age 53, of Kam's Towing & Recovery, with False Pretence, Forgery, Uttering a Forged Document and Fraud Under $5,000. He is scheduled to make his first court appearance in Toronto on December 19, 2014.

"While we know that there are many honest and hard-working towing operators in the province, this type of alleged fraudulent activity which is done by a small number of individuals, casts a shadow on the entire towing industry," continued Rasbach. "Most major insurers are having a hard look at towing operators as part of their fraud prevention efforts. Historically, the towing industry has not been well regulated. Bill 15 - Fighting Fraud and Reducing Automobile Insurance Rates Act, which is currently in the Ontario Legislature will increase oversight of the towing industry and provide more consumer protection.  Aviva Canada urges the Government to pass Bill 15".

What Aviva Canada is doing to fight fraud?
Building on already strong capabilities, Aviva Canada has stepped up its tough approach to tackling fraud with more dedicated resources and an investment in technology that aims to identify fraud and even anticipate the potential for fraud before it happens. With an industry-leading anti-fraud team in place, plus solid public sector and industry collaboration, Aviva is well positioned to combat fraud better than ever before. The impact of Insurance fraud in Canada is estimated at over $1.6 billion dollars annually.

What can consumers do to help fight insurance fraud?
Help protect affordable insurance premiums for all Canadians by reporting potential fraud to Aviva Canada's Fraud Information Centre — open 24/7. Email [email protected] or call 1-855-332-5255.

About Aviva Canada
Aviva Canada is one of the leading Property and Casualty insurance groups in Canada providing home, automobile, recreational vehicle, group and business insurance to more than three million customers. The company is a wholly-owned subsidiary of UK-based Aviva plc and has more than 3,000 employees, 25 locations and 1,700 independent broker partners. Aviva Canada and its employees invest in positive change including through the Aviva Community Fund and Eva's Initiatives, its partner in Aviva's global Street to School program to help homeless and other at-risk youth reach their potential.

For more information visit AvivaCanada.com, our blog or our Twitter, Facebook and LinkedIn pages.

SOURCE: Aviva Canada Inc.