Insurance broker’s ICBC commission scam gets her a 10-year ban

A former insurance broker who scammed ICBC out of more than $15,000 has been banned from working in the insurance industry for 10 years.

According to Feb. 25 Insurance Council of BC decision, Megistefi Gjine collected the commission on 25 ICBC vehicle insurance policies which were then cancelled days later.

The decision said the insurance policies were taken out on new or newer luxury vehicles before being cancelled days later.

Gjine netted between $600 and $700 commission on each policy.

“(Gjine) demonstrated an overall lack of trustworthiness and was exploitative of ICBC and its commission system,” the Insurance Council of BC said in the decision.

The decision said 22 of the 25 insurance policies were taken out by a numbered company owned by a family member. One policy was taken out by a company she was listed as the president of.

The decision didn’t give a precise figure of how much commission Gjine made, but it would be between $15,000 and $17,500.

The decision said if an insurance broker knows that a vehicle is going to be insured for a short period of time then a temporary operation permit should be sold and not a regular insurance policy.

The regulator became aware of the situation in 2021 when it realized the brokerage had placed more than 40 one-year insurance policies that were cancelled within 30 days.

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The decision didn’t say where in BC Gjine worked but she lost her licence after the ICBC investigation in January 2021 and was promptly fired.

“(Gjine) demonstrated a lack of trustworthiness, good faith and competence and did not act in the best interest of the insurer,” the regulator said.

The Insurance Council of BC is also critical of how Gjine acted during the investigation saying she was “dishonest” and not forthcoming, and “misleading” in her answers to questions about her relative’s company.

The regulator said she had “a flagrant disregard” of the rules she had to follow.

Ultimately, she was banned from applying to work in insurance for 10 years.

While the regulator would normally impose a fine and costs, the insurance council said that in light of her serious medical condition, it wouldn’t be doing so.