In an attempt to lessen and eventually eradiate fraud, the New York State Insurance Department is proposing that changes be made for no-fault auto insurance coverage. Fraud on no-fault insurance is said to be an emerging problem in New York. Reports from the Department show more than 11,000 no-fault fraud complaints year to date, approximately 7% more than the number of complaints received last year.
The proposed changes include regulations that will increase the number of information required on medical forms, and reduce the need for additional verification by insurance companies. Experts believe that these changes are necessary in hastening the process of filing and resolving claims. Other changes that will be made on New York car insurance include an increase in the maximum attorney fee; giving insurers a have greater latitude to disagree with health services that are not billed in agreement with the appropriate free schedule; and making it easier for insurance companies to suspend all claim payments submitted by the medical center owners who are suspected of scam or fraud.
Property Casualty Insurers Association of America regional manager Paul Magaril said that New York policyholders are paying the second most expensive car insurance premiums in the US, roughly 50% higher than the national average. Superintendent James J. Wrynn said in a recent interview that the Department has been keeping a keen eye on insurance providers and protecting the best interests of the consumers. He believes that the hardworking citizens of New York should have to carry the burden of paying for abuse and fraud tax that is added on their car insurance premiums. The price of each no-fault claim has increased by more than half in the last 60 months, and all New York drivers who have vehicle insurance are paying for the increase.
According to the New York State Insurance Department, protecting and looking after consumers requires putting an end to those who would take advantage of the existing insurance system only to achieve personal gain and to unnecessarily increase premium costs for all New York drivers. The Department believes that the No-fault reform is urgently needed and that the planned regulatory reform is a major step on the way to reaching their goals.
Insurance Information Institute president Robert Hartwig called on legislators to find ways to eliminate scams and abuse in New York’s no-fault coverage insurance system. Hartwig said during the yearly assembly of the New York Insurance Association that New York’s insurance system has suffered from the terrible combination of having high limits and lack of control systems.