Alberta RCMP advise of ghost broker scam

PONOKA -- An incident of insurance fraud has prompted a warning from Alberta RCMP.

Mounties say that during a recent motor vehicle collision in the Ponoka area, it was discovered that one of the involved parties was the victim of insurance fraud. The victim provided his pink card as required, which indicated the company 'All Covered Canada', only to find out that this insurance company did not exist.

'Ghost brokers' are individuals who disguise themselves as insurance brokers under the false pretext of selling insurance. As a result, those who pay ghost brokers for these fake insurance policies are not covered or insured at all.

Police are providing red flags to watch out for in order to spot a potential 'Ghost broker'.

• Deals that are too good to be true
• No physical office or suspicious online presence
• Unable to provide proof of insurance immediately
• Charging a “finder’s fee” 
• Asking for cash-only payments

They also recommend that members of the public always:

• Speak with an insurance professional who is properly licensed and qualified to sell insurance
• Only purchase insurance from a brokerage or agent you trust
• Confirm a specific insurance broker’s license status by referring to the licensing body within your province. For example, in Alberta, Albertans can check the Alberta Insurance Council to look up and confirm details of an insurance representative and the agency they represent. 

If you believe you are a victim of, or have information regarding ghost broker fraud, you're asked to call your local police.