Insurance Fraud Is On The Rise in New York

Auto insurance fraud in New York increased almost 9 percent between 2008 and 2009, according to a recent state report. The report, released in early March by the New York State Insurance Fraud Bureau, is released annually and tracks fraud figures across all lines of insurance. The most recent report found that no-fault auto insurance fraud had accounted for 54 percent of all fraud reports received by the bureau in 2009.

In all, the bureau received 13,433 suspected fraudulent no-fault claims in 2009, up from 12,339 in 2008.

As a result of such fraudulent claims, auto insurance rates for New York drivers have steadily increased.

In response to the sharp increase in fraudulent no-fault claims, the New York State Insurance Department has stepped up efforts to combat no-fault fraud. One measure includes proposed revisions to Regulation 68, which implements the no-fault statute.

In most cases, no-fault fraud is committed by organized crime groups that operate corrupt medical clinics submitting fraudulent claims for treatment that was either not performed or not necessary.

Unfortunately, innocent New York drivers are footing the bill for this fraud through higher auto insurance premiums.