GEICO has had enough; the insurer is working with the New York State Insurance Department’s Frauds Bureau, the National Insurance Crime Bureau (NICB) and law enforcement agencies to curb fraud and increase public awareness of the problem.
GEICO also initiated the filing of a series of lawsuits against defendants accused of running a caused accident ring in New York who submitted fraudulent claims to the company totaling approximately $2 million. “Our claims team learned that many of the ‘accidents’ were purposely caused in order to subsequently overbill the company for medical treatments that weren’t needed or were never performed,” says Seth Ingall, regional VP of GEICO’s Woodbury, N.Y., office.
According to the Insurance Information Institute, no-fault fraudulent claims in New York are 111% higher than the U.S. average and the NICB estimates that fraud against property/casualty insurers adds approximately $250 annually to the average household’s premium. This fraud tax costs all of the insurance-paying public in the form of higher insurance premiums.
GEICO supports legislative proposals that are currently being advanced in Albany to combat New York’s growing no-fault crisis. These proposals include support for implementing medical treatment guidelines for specific auto accident-related injuries to reduce instances of over-treatment and/or unnecessary treatments as well as proposals to implement an arbitration system to eliminate trial costs for all parties while also expediting claims resolution.
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