Manitoba Public Insurance is warning of the impacts of auto insurance fraud, after one man allegedly staged a collision and another had his story potentially foiled by an eye witness.

“A conviction of any nature is a very serious consequence of auto insurance fraud,” said vice-president of customer service and COO Curtis Wennberg in a news release.

“A criminal record can affect travelling across the border, employment or business opportunities. Insurance fraud is not a victimless crime and this criminal activity affects honest Manitobans through their premiums.”

MPI said two men are currently facing charges after they allegedly committed separate frauds against the Crown corporation.

According to a news release, a 39-year-old Winnipeg man opened a hit and run claim after saying he discovered damage to his car while washing it. Then, a reported eye witness came forward and gave an alternate story, saying they helped this man after his car got stuck to another car while backing up in a parking lot. After the cars were detached the man reportedly left without leaving any information. The witness was able to provide MPI with a description of the driver and licence plate.

The man has been charged with a number of offences including fraud under $5,000 and knowingly providing false information.

In a separate incident a 27-year-old Winnipeg man told his adjuster his vehicle was hit by another vehicle, causing a lot of damage. An investigation was launched and a collision analyst determined that a crash had allegedly been staged, where one vehicle had been stationary during the collision. When given this information the man withdrew his claim, but has still been charged with fraud over $5,000 and providing false information.

MPI said auto insurance frauds cost ratepayers around $50 on their vehicle insurance bill. 

Anyone with information about auto insurance fraud is asked to call MPI’s TIPS line at 204-985-8477 or toll free at 1-877-985-8477.