The claimant alleged he was struck as his bicycle passed behind a Mercury-insured vehicle that was backing up in a parking lot. He called the police, filed a report claiming injury and property damage, and then was transported by ambulance to a medical center to treat his alleged injuries.

According to Mercury, the real story was quite a bit different, as the claimant did not know the whole thing was caught on video – and that the video clearly showed the claimant intentionally slapping the back of the insured vehicle with his hand and then guiding his bicycle to the ground to make it look like he'd been struck by the car.

The claimant retained an attorney to pursue an injury claim, which was denied by Mercury following the police report, which included the security camera video taken at the scene. The claimant ultimately was arrested, convicted, and sentenced to three months in jail with three years' probation; he also had to pay a fine, restitution, and his medical bills.

Claim #2:  Wrong Way Driver

The insured stopped at an intersection in front of a repair van. Suddenly, the two vehicles collided in what appeared to be a rear-end collision, which necessitated police being called to gather statements.

The insured driver and passenger claimed the van driver had rear-ended the insured's vehicle and both were injured. Mercury said that the van driver's adamant contention – that he had not caused the accident – led the investigating officer to seek surveillance video of the incident, which he found at a nearby gas station. The footage showed that instead of proceeding through the intersection as expected, the insured driver threw her vehicle into reverse, slamming into the front of the van, Mercury said.

The insured driver and her passenger subsequently were charged with insurance fraud and conspiracy, and the driver also was charged with assault with a deadly weapon … her car. And, the claim was denied.

Claim #1: A Not-So-Merry Christmas

According to Mercury, the insured and two cohorts staged an accident around Christmas and filed medical payment claims through Mercury, which were identified as questionable and assigned to the SIU for investigation.

A detailed claims history was compiled for the three individuals, who then were interviewed by SIU investigators. What the investigators said they found was that each claimant's story was different, so they began to look deeper. That is when they uncovered some very compelling evidence that suggested this accident was staged, according to Mercury.

The SIU team said that it discovered the insured's prior claim history showed a loss at the same location with the same facts provided. According to Mercury, a confession quickly followed about his latest claim, as well as a description of all the alleged fraud he had committed on each of his previous claims. All three claimants were convicted and given probation, community service, and ordered to pay more than $26,000 in restitution to Mercury Insurance.

“When it comes to insurance fraud, the actions of a few greedy people can have a huge financial impact on the innocent,” said Mr. Bales.

Learn more: www.mercuryinsurance.com.