State Farm Canada seeks $21 million in damages from Ontario health clinics and individuals

State Farm Canada has filed a statement of claim seeking a total of $21 million in damages from several Ontario health service providers and individuals.
State Farm’s statement of claim contains allegations not proven in court. It alleges that six health clinics and eight individuals were involved in a conspiracy to submit “false and fraudulent documentation” to State Farm related to accident benefits claims.
State Farm’s statement of claim requests a declaration from the court that the insurer is no longer required to pay any future or outstanding bills to the defendants.
The companies listed in the statement of claim include a numbered company and Pacific Assessment Centre Inc., Fairview Assessment Centre Inc., MD Consult Inc., MD Assessment Consult Inc. and Traffic Law Advocate (E.E.) Professional Corporation.
Phone calls to the Pacific Assessment Centre and the law firm believed to be representing the defendants were not returned.
“Auto insurance fraud, specifically accident benefit fraud, continues to be a serious industry and consumer problem in Ontario,” said John Bordignon, State Farm’s media representative. “Clearly, insurance fraud is a criminal activity that affects everyone. This is not a victimless crime. It’s a crime we all pay for.
“We have seen progress since the Ontario government’s mandated auto insurance reforms were implemented in September 2010, and the provincial anti-fraud task force will shed more light on this issue and craft positive recommendations to combat it.
“State Farm is committed to working with our industry partners, regulators and the government to reduce the impact insurance fraud has on consumers.”