..., fraud is deliberate deception to secure unfair or unlawful gain.
please explain where the deliberate deception occurred here .
"... my father owns a bike and I ride it. The insurance company suggested this. They said anyone can ride the bike as long ands they have an M1. "
The deliberate deception occured when they KNEW full well that by setting the policy up in the manner they did they were decieving the "insurer", (remember the agent is not the insurer they are merely acting as an agent, and we don't know if they are truly an agent for the company or a broker representing the companies line of products). An insurance policy is a legal contract and it clearly states you cannot aterially misrepresent the facts, (which by the posters own admission is that HE upgraded read his initial post). The "insurance company" never told him this arrangement was ok a poorly trained or stupid agent may have. the insurer is not bound, (it has been tested in court), by an error made by an agent or broker.
As has been explained doesn't matter what the "agent" told him, (unless they recorded the conversation, and that agent still represents that company), and his dad. If it isn't in writing it never happened, and that is exactly what the agent is going to state.... " I never advised them to commit insurance fraud". Under the insurance act if the 22 is the PRIMARY rider then he MUST be listed as such and the premium would be what he was originally quoted. If he is listed as a secondary or "occasional" rider but is riding the bike the majority of the time that IS insurance fraud. The "unfair or Unlawful gain" is the reduced premiums.
If he is involved in a collision and the insurer investigates, (which they will, so they can deny coverage and potentially save tens, if not hundreds of thousands of dollars). I did some insurance investigation at one point we would go visit neighbors and use "catch phrases" like I am investigating Johnny's accident and I want to make sure he gets everything that is coming to him. Now the neighbor thought that meant I was a nice guy..LOL I would then ask if they saw Johnny riding? was he a good rider? How often did he ride? then something along the lines of I see Johnny's dad also has his bike licence did he ride very often? Of course made it all seem like casual conversation and not probing. If 2 - 3 neighbors said dad never or barely rode but Johnny rode all the time..... claim DENIED. Then the fun starts. First thing i you get a registered letter advising your insurer has deemed you to have committed insurance fraud, (MAterial misrepresentation). That effective immediately ALL your polices with them are canceled, for fraud. Good luck now getting insurance, (this applies to the 22 year old AND dad)
Now, you get no settlement for the bike, (but lender is sure as heck coming for their money). If there was another party to the accident and unless your deemed 100% not at fault, then that other persons insurer is cming after the 22 year old AND dad, for anything they had to pay out.
So my advice to the poster is go get your insurance policy and READ IT. You will see clearly you have misrepresented the facts. You are putting not only your financial future in serious jeopardy, (should you have a collision or make a claim), but you are also putting your father at VERY serious risk, (presumably he is the one with assets, house etc).
It is YOUR duty to know what the policy says and ensure you have given all the facts, (which includes you are the primary rider). Don't wait till you need a claim to get your facts straight then. Insurers have played this game millions of times over the decades, I can assure you they have seen it all and if it comes to them saving $250,000 in a denied claim do you then think they are going to "play nice" and accept what you tell them that an agent told you to commit insurance fraud.
Poster, can you tell us what class licence your dad holds? M1, M2, M?? Also go read the policy again I suspect, you will find that an M1 rider, (for that rate is not a permitted rider).
