SGI Review Released

SGI did not breach policies and procedures for conducting surveillance work according to a report released today.

The report is the result of a review conducted by PricewaterhouseCoopers of SGI's surveillance activities for the period of January 1st, 1998 to June 3rd, 2002.

PricewaterhouseCoopers found the policies and procedures used by SGI to combat insurance fraud to be reasonable and consistent with insurance industry best practices. However, the report recommends that SGI change its management information and accounting systems to better compile information on surveillance and investigative activities.

"I have directed SGI to fully comply as quickly as possible with the recommendations in the report so this situation does not occur in future," Crown Investments Corporation Minister Maynard Sonntag said.

"The report makes it clear that the systems to track surveillance-related information at SGI are inadequate. The report finds that this led to SGI supplying incomplete and inaccurate information regarding its activities, though it is clear from the report that SGI did not knowingly mislead."

On June 7th, the Minister directed SGI to conduct an independent review of its surveillance activities.

PricewaterhouseCoopers was engaged to review:

SGI's policies and procedures as they related to personal injury claims;
whether these procedures were breached;
circumstances surrounding the Ms. Virginia Cook case; and
circumstances regarding information the Minister provided to the Legislative Assembly on June 6th, 2002.

"PricewaterhouseCoopers found SGI's policies and procedures to combat insurance fraud to be in keeping with best practices in the insurance industry. These findings should help to restore public confidence that SGI is conducting its investigative activities appropriately and is acting in the best interests of all Saskatchewan motorists by doing so," Sonntag said.

In its review of the Virginia Cook case, the report concluded that the surveillance performed was in accordance with the Corporation's policies and procedures. The report found that SGI's policies and procedures for conducting surveillance work were not breached in any of the cases reviewed, and that all decisions for surveillance appeared to be reasonable and justified.

It also noted that SGI's legal department, on occasion, engages the assistance of surveillance specialists and recommends that a formal policy to document the decision-making process and necessary approvals be developed.

For media inquiries only, contact:
Julianne Jack
SGI Communications
Regina
(306) 775-6907

For all other inquiries, call 1-800-667-8015.

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