Florida is one of the many states in the United States that is reeling under the problem of auto insurance frauds. Despite strict checks in place, there has been a consistent rise in the number of frauds being reported in the state. Though the state government is still contemplating on the various measures that it can implement to tackle this fraud, one frustrated county in the state has decided to go ahead and implemented a law to curb this menace.
While the state government is trying to fix the loopholes in the no-fault insurance law, this county has passed an ordinance to unearth the medical clinics in the state that issue fraudulent medical certificates to file claims. The ordinance, passed unanimously by the Hillsborough County Board of Commissioners, stipulates that every medical clinic in this region will need a valid county license in order to treat people with injuries sustained in auto accidents. Standing by this new ordinance, Kevin Beckner, the Commissioner said that this was needed to give residents of the county a ray of hope and curb the increase in auto insurance fraud which was costing each policy holder $350 more each year. Overall the Hillsborough county, he said, was paying premiums in excess of $15.5 million due to increase in fraud according to a report from the National Insurance Crime Bureau. Beckner went on to say that this was not just impacting the consumers, but also the economy of the county.
The National Insurance Crime Bureau has drawn up an extensive report which ranks states based on the auto insurance frauds reported. Not surprisingly, Florida occupies the top spot in the rankings. The Hillsborough county reported a whopping 166% increase in auto insurance frauds from 2008 to 2009. This county has also seen an increase in the number of fraudulent medical clinics that claim to treat patients with auto injuries that result in PIP claims. There are a total of 158 such medical facilities in Hillsborough alone as compared to 78 such clinics in Pinellas county and 22, 20 and 17 in Pasco, Manatee and Polk counties respectively.
The new ordinance was passed under the initiative of Beckner who said that the regulations of the ordinance were drawn up considering the inputs from l personnel in law enforcement agencies who investigated PIP claims and unearthed the fraudulent clinics working hand in glove with the scamsters.
