IBC Warns of flood-damaged vehicles for resale after “Superstorm” Sandy

Toronto (Nov. 29, 2012) – As the Northeast and Mid-Atlantic region recover from “Superstorm” Sandy, which hit between October 29 and 31st, Insurance Bureau of Canada warns Canadians to be vigilant of storm-damaged vehicles being resold to unsuspecting consumers.

“In each disaster there are attempts by fraudsters to clean up and resell flood-damaged vehicles,” says Rick Dubin, Vice-President of Investigative Services at IBC. “Canadians should be cautious when a deal seems too good to be true and should report any suspicious vehicles to IBC through our tips reporting program at 1-877-IBC-TIPS or through the web at www.ibc.ca.”

Authorities estimate that thousands of vehicles have been damaged from flooding in several US states. IBC is working with National Insurance Crime Bureau (NICB) and law enforcement to identify these storm-damaged vehicles to reduce the potential for consumers being taken advantage of.

Dubin adds, “This is a case of buyer beware. When considering a private purchase, you should consider doing a history search of the vehicle and have the vehicle fully inspected by a known mechanic to ensure it is not a storm or flood related or even stolen vehicle. The consumer can also go to the NICB’s web site and run the Vehicle Identification Number (VIN) through NICB’s VIN search to see if it comes up as a branded vehicle.”

Not only has this type of activity surfaced post Hurricane Katrina, it happened frequently after some of the floods we have had here in Canada in Quebec and New Brunswick. It is something everyone should be aware of at all times, especially after major catastrophic events where fraudsters are looking for opportunities to take advantage of Canadians.

For more information on insurance crime click here.

About Insurance Bureau of Canada

Insurance Bureau of Canada is the national industry association representing Canada’s private home, car and business insurers. Its member companies represent 90% of the property and casualty (P&C) insurance market in Canada. The P&C insurance industry employs over 114,000 Canadians, pays more than $7 billion in taxes to the federal, provincial and municipal governments, and has a total premium base of $40 billion.

To view media releases and information, visit the media section of IBC’s website at www.ibc.ca and for IBC on Twitter follow @insurancebureau.

Tags: ,