Recent reports say that New York’s no-fault automobile insurance system has been causing a headache for both insurance providers and motorists, and needs to be changed immediately.
Insurance Superintendent, James J. Wrynn, said that New Yorkers should not be required to pay high amounts of auto policy premiums when bulk of that amount goes to abuse and fraud taxes. Wrynn adds that a reform in the No-fault system is what the Empire state needs and a proposed amendment in regulations is a step towards changing auto insurance for the betterment of all.
Superintendent Wrynn already presented a draft that is set to amend existing state policies. Part of Wrynn’s proposed reforms is designed to lessen the number of insurance fraud cases happening in the Big Apple. According to 2009 records of the Insurance Department’s Bureau, the office has received approximately more than 11,000 complaints involving fraudulent claims and other cases of felony in the no-fault system. This alarming figure is said to be 7% higher than the number of cases back in 2008. Meanwhile, the number of fraudulent no-fault cases failed for 2008 is 52% higher than those in 2007. Experts say that the number of insurance offenses can be lessened further if right amendments in the no-fault policy are set into place.
Included in Wrynn’s proposal is a modification in the insurance forms, creating a need to obtain information that will satisfy medical service providers and eliminate a need for added verification. This change is set to hasten claims processing and releasing of payments. Wrynn’s explains that one of the causes of this steep claims costs are disputes that occurs between insurers and medical service providers which causes a delay in the release of claim payments.
Wrynn also indicated that in his planned reform, insurance providers will have a wider set of reasons to deny medical services that are not really provided or are not properly billed in accordance to a set fee schedule. The imposing of a payment scheme will lessen payment for fraudulent claims and occurrences of over-billing.
Wrynn said that one of the best things for consumers that this reform aims to accomplish is the lessening of costs for each no-fault claim. Other provisions in the reform that will directly benefit policy holders are the scheduling and venue setting of health examinations. This auto reform will see to it that medical exams for New York drivers and car owners will be set in geographically convenient locations, even scheduling multiple exams in one day if the need arises.
