It is no surprise that as the economy has worsened more people have been willing to break the law to make a fast buck. But the issue in NY is deeper than that. Some have said that the way the laws are written leave an open checkbook for those who are organized and know how to work the system. It is past time to consider some changes.
You can find more in this National Underwriter article http://ping.fm/hkn15 but here are some excerpts:
The number of suspected fraudulent no-fault claims for the year far outpaced all other forms of insurance fraud reported.
The number of suspected fraudulent no-fault reports has increased by more than 30 percent since 2005.
New York’s no-fault claim costs are the second-highest in the country.
“As an inevitable consequence, auto insurance rates for New York drivers are increasing as well.”
Superintendent James Wrynn has proposed revisions to Regulation 68, which implements the no-fault statute.
The proposed revisions, according to the report, would:
•reduce payment of fraudulent claims and instances of over-billing.”
• Simplify procedures to suspend payments for claims submitted by the owners of medical clinics suspected of fraud while an investigation is underway.
• Require insurers to schedule medical examinations they request, so as not to overly burden the insured.
• Raise the maximum attorney fee from $850 to $2,500 to reduce the incentive to file small claims separately and “to encourage the consolidation of claims in arbitration and litigation.”
Ellen Melchionni, president of NYAAIF, said in a statement, “No-fault fraud is often committed by organized criminal enterprises operating corrupt medical clinics that submit fraudulent claims for treatment that was either not performed or not necessary. Unfortunately, it’s innocent New Yorkers who are footing the bill for this fraud through higher auto insurance premiums.”
