In what circumstances will an insured make a false statement about a car accident?

In Tong v. Insurance Corporation of British Columbia, [1995] B.C.J. No. 888 (B.C.S.C.), the insured made a false statement about a car that the court found had been stolen. Melnick J. concluded that the statements were material in that the "misstatements by [the insured] did affect the management of the claim by I.C.B.C. in that its investigation would have likely taken a different, and more thorough course had [the adjuster] been told forthwith of the version of the events [the insured] ultimately gave …". (para. 24)