Study Contends that 20 Percent of New York City Auto Injury Claims are Fraudulent

The Pennsylvania based Insurance Research Council (IRC) has conducted a study examining the integrity of no-fault auto injury claims in the New York City area. The IRC study, which reviewed claims submitted from 2007 to 2010, concluded that abusive no-fault claims in the New York City area has risen from 29 to 35 percent and that more than twenty percent of auto injury claims are fraudulent. The fraud reportedly manifests itself most prominently in overbilling by medical providers and excessive utilization of medical services.

The side-by-side comparison of New York City claims to claims filed by upstate motorists suggests drastic differences in the way no-fault claims are handled in different parts of the state. One major difference is that average payouts for claims filed in the New York City area were nearly double similar claims filed by upstate claimants. Additionally, 44 percent of New York City drivers visited four or more health care providers as a result of their injuries, but only 14 percent of drivers in other parts of the state underwent such extensive treatment. The Study indicates that New York City area medical providers frequently charged the auto insurer far more than New York's established fee schedule for the services provided, whereas providers in other areas of the state charged auto insurers rates consistent with that schedule.

In New York State the obligatory no-fault insurance policy covers up to $50,000.00 of economic loss. Some motorists choose to purchase additional no-fault insurance coverage which is usually modest in price and which will insure the driver against economic loss in excess of $50,000.00. Regardless of the amount of economic loss, accident victims in New York are entitled to file a lawsuit against a negligent driver for non-economic loss if the victim suffers a "serious injury" as that term is defined by Section 5102(d) of the New York Insurance Law and the relevant case law interpreting that statute.

Sources:

OAI: New Study Hints at Problems in NY No-Fault Auto Insurance System
Insurance Research Counsel News Release Dated January 5, 2011

Dealing with the court-related issues that arise after an automobile accident can be frustrating and time consuming. Often victims of automobile accidents are emotionally and physically exhausted and have difficulty navigating the post-accident process alone. It is important to act quickly after an accident to insure that documentary and physical evidence is preserved and take the necessary steps towards preserving your claim. Thankfully the experienced attorneys at The Paleudis Law Firm are ready to guide you through the process.

If you have been injured in an automobile accident in New York, you need an experienced New York automobile injury lawyer to help you preserve your rights and fight for the financial compensation you are entitled to under New York law. The experienced attorneys at Rudner & Paleudis, LLC will fight to recover money for your medical and other accident-related expenses. If you have been injured in an accident call the attorneys at Rudner & Paleudis, LLC immediately at (212) 949-0138 in New York City, (914) 220-8270 in White Plains, or (203) 355-3635 in Stamford, Connecticut.