Identity Fraud

Identity theft has become one of the fastest-growing crimes in North America

Major Canadian credit bureaus indicate that they receive over 16,000 identity theft complaints per year. According to the Identity Theft Resource Center, it takes an individual almost 300 hours and $500 in out-of-pocket expenses to clean up the mess caused by an identity theft.

One reason for the increase in identity theft may be that people often become victims without having any direct contact with the identity thieves who acquire their personal data. Simply by doing things that are part of everyday routine, an individual may inadvertently expose their personal information to identity thieves who will use the stolen identity without the person’s knowledge or permission.

Travelers Canada’s identity fraud expense reimbursement coverage

Our identity theft product includes expense reimbursement up to $25,000 per covered person to restore financial health and credit history as a result of an identity fraud. Identity theft resolution services are included in our coverage.

The identity fraud expense coverage master policy from Travelers Canada is designed to be purchased by a commercial business or a non-profit organization, so it can provide coverage as an employee benefit to its employees. Coverage is also available for business customers under a separate identity fraud expense coverage master policy.

Key coverages and features

  • Credit restoration services Provided by Intersections Inc and Sigma Loyalty Group Inc. These services include:
    • Obtaining credit reports to review with the victim
    • Documenting events and contact history with the victim
    • Assisting in placing fraud alerts with major credit reporting agencies
    • Enrolling the victim in six months of daily credit monitoring
    • Providing the victim with a fraud first-aid kid
  • Lost wages Up to a maximum payment of $1,000 per week for a maximum period of five weeks, as a result of absence from employment, including for wrongful incarceration
  • Family coverage – Including residents of the insured person’s household provided they are either a spouse, child under the age of 18 or parent
  • Lawyer’s fees – With Travelers’ prior consent, including:
    • Removing criminal or civil judgment wrongly entered against the victim
    • Challenging information in a credit report
    • Defending suits brought incorrectly by merchants, financial institutions, healthcare providers or their collection agencies
    • Pursuing the release of medical records for the purpose of investigating medical-related identity fraud
    • Contesting wrongfully incurred tax liability
    • Contesting the wrongful transfer of ownership of an insured person’s tangible property
  • Daycare and eldercare expenses – Incurred solely as a direct result of any identity fraud discovered during the policy period
  • Customers choose their own legal counsel
  • Limit options – Ranging from $1,000 to $25,000
  • Travel and accommodation expenses – Up to a maximum payment of $1,000 per week for a maximum period of five weeks for reasonable costs incurred by the insured person relating to the management of an identity theft
  • Medical records fees – Incurred solely as a result of the investigation of a medical-related identity theft
  • Fees to re-apply and re-issue government-issued personal identification – Identification documentation must have been compromised as a result of an identity theft

Identity fraud claims examples

Fraudulent mortgages

An identity thief was able to take out a second mortgage on property owned by a woman in Edmonton after he stole her personal information. The thief received more than $24,000 in fraudulent loan proceeds. The victim of the fraud had to hire a lawyer to pursue a lawsuit against the lending institution to release the mortgage so she could sell the property.

Bogus charge accounts

A traveling salesperson discovered that someone had used his identity to set up charge accounts with various merchants. While he was living in a hotel, he attempted to get the accounts cancelled and his credit restored. This took much time and telephone expense (the hotel charged a fee on each call) plus costs of notarization of documents and mail costs. Total expenses exceeded $1,000.

Twelve bogus credit cards obtained

A victim of ID fraud has been fighting to clear his identity for more than one year. The man had insurance through a company where another man, with the same name, worked. The second man stole the personal information of the first and proceeded to obtain 12 credit cards and charged thousands of dollars on them. He also rented an apartment using the stolen identity. The victim has had to take time off from work to meet with law enforcement authorities and has had to retain a lawyer to fight collection agencies.

To learn more about our identity fraud expense reimbursement coverage, contact your insurance brokers. If you don’t have a broker, locate a Travelers Canada broker near you.

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