Suspicious claims and insurance fraud continue to plague New York's no-fault auto system. In fact, many contend that the problem is only worsening. In a recent press release, the New York Alliance Against Insurance Fraud (NYAAIF) pointed to a 30-percent increase in the number of no-fault fraud reports received by the New York State Insurance Fraud Bureau since 2005.
NYAAIF noted that this costly form of insurance fraud rose nine percent between 2008 and 2009, and accounted for 54 percent of all fraud reports received by the Bureau. In its annual report, which was released in April, the Bureau estimated that suspected no-fault claims totaled 13,433 last year, a noticeable uptick from 12,339 in 2008.
"No-fault fraud is often committed by organized criminal enterprises operating corrupt medical clinics that submit fraudulent claims for treatment that was either not performed or not necessary," explained Ellen Melchionni, president of NYAAIF, in a press release.
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