Don't Lie To ICBC

Honesty Is Always the Best Policy

Court upholds ICBC's decision not to pay out to driver who lied

The BC Supreme Court ruled against a Vancouver man who tried to inflate the value of his allegedly stolen car in a report to ICBC.

In this case, a judge ruled that Jasbir Singh Chahal of Vancouver, aged 30, made misrepresentations about his claim and upheld ICBC's decision not to compensate Chahal for the loss of his 2000 Porsche Boxster.

Chahal paid $38,000 for the car in November 2004, but declared the value to be $25,000 on the transfer tax form. In August 2005 he reported the Boxster stolen from the parking lot of a Delta pub, and in his report to ICBC he claimed he had paid $44,000 for the vehicle. ICBC's Special Investigations Unit conducted a further analysis which uncovered numerous inconsistencies between Chahal's statement and that of the vehicle's former owner.

The man who sold the car to Chahal testified in BC Supreme Court in New Westminster that the Boxster was equipped with an immobilizer anti-theft system and could not be started without a coded operating key. He also testified that he supplied Chahal with more than one operating key – a claim Chahal denied at trial. Expert technicians also testified the Boxster would have to be moved either by using an operating key or by being towed, and so would have been virtually impossible to steal.

In its decision, handed down in December, Mr. Justice Crawford ruled Chahal made misstatements about his stolen vehicle claim, in that he lied about the vehicle's purchase price and also about the number of operating keys he had been given, and upheld ICBC's decision not to compensate Chahal for the car. The court also awarded ICBC its legal costs for this case.

"Trying to defraud ICBC has serious consequences," said Steven Tripp, manager of ICBC's Special Investigation Unit. "This ruling confirms that it is important to be fully truthful when presenting a claim to ICBC. After all, those customers who exaggerate or present false claims threaten our ability to provide low and stable rates for all our customers."

ICBC estimates fraud and exaggeration costs each of ICBC's 3.1 million customers in the range of $100 to $150 per year. ICBC is committed to protecting customers from fraud, because attempts to defraud ICBC amount to theft from customers.

March is National Fraud Prevention Month in Canada, and ICBC is marking it by helping customers and the public to recognize, report and stop fraud. The public can help combat fraud and help keep their auto insurance premiums low and stable. You can do your part by reporting suspicious, exaggerated or fraudulent claims to ICBC's fraud tips line (604-661-6844 or 1-800-661-6844). Tip information is confidential and callers can remain anonymous.