In Florida, the local people are exploiting the system of no-fault auto insurance which was launched in the year 1972 in order to stop fraud. There have been cases of fraud and flippant lawsuits in South Florida which cost up to US $ 1 billion, more that the amount necessary for personal injury protection or PIP insurance according to the Geer Up Florida campaign. Geer Up Florida is a coalition between insurance companies, the state Sheriff’s Association and Associated Industries of Florida.
It has been mentioned that the state’s insurance system has been filled with fraud clinics, lawyer referral services, and organized crime. Thus, there is a need for reform in order to stop all kinds of frauds going on in the state. However, this anti-lawyer measures may have an adverse effect on the policyholders and their families as they might find it difficult to recover after a lawful personal disaster. Therefore, the data for Central Florida is of the view that targeting the fraud will be best for everyone.
The no-fault auto insurance was adopted by Florida in 1972 in order to reduce costly and childish lawsuits. According to the law, people should carry personal injury protection worth $ 10,000 which provides them the medical costs as fast as possible without considering the fact that who is responsible for the accident. The policyholder’s rights to sue others on account of pain and suffering have been limited by the State Law.
But, it has been found that going to the hospital in an ambulance and emergency-room examinations cost up to $ 10,000 and many fraudulent medical practitioners seek unscrupulous ways to extract large sums of money from barely injured accident victims along with the $ 10,000 cost.
However, the reform recommendations provided by coalition and Justice Association differs to the extent that according to the coalition, the rules regarding holding insurers liable for resolving claims fast and in good faith; to provide more time for investigation must be relaxed. It wants that new attorney fees should be set and the insurance companies should be enabled to inspect the clinics of the medical practitioners to make sure they are lawful. Justice Association recommends that the police should provide better accident reports to enable the insurers to determine the severity of accidents and also provide security for health-care providers who provide reports of any fraudulent activity going on.
