The National Insurance Crime Bureau (NICB) has some vexing news for Floridians. The Des Plaines, Ill.-based not-for-profit organization's recent analysis of questionable claims (QCs) reveals that the number of suspicious auto accidents that were either staged or deliberately caused is rising.
Just how significant is the increase? According to data submitted by NICB member insurance companies, there was a 58-percent leap in QCs in Florida in the past year alone (from 2008 to 2009). Alarmingly, Tampa reported 487 QCs related to staged/intentially caused accidents in 2009, a 290-percent uptick over the previous year. Miami pointed to 258 accidents (an 11-percent increase); Orlando had 240 such accidents, representing a 24-percent increase.
"South Florida used to be the focal point of these deliberate crashes," said NICB President and CEO Joe Wehrle. "While the Miami and Hialeah areas continue to show increased activity, the criminals have expanded their operation[s] northward, and Tampa is now at the epicenter of this crime trend."
In terms of state-wide statistics, Wehrle said the number of questionable claims for all types of insurance fraud increased 15 percent from 2008 to 2009. He added that the 58-percent jump in the staged/caused accident category indicates that criminals are taking advantage of the state's no-fault auto accident coverage.
"Previous industry studies have shown that among the12 states that have no-fault coverage, Florida had the highest rates of fraud and buildup in both bodily injury (BI) and personal injury protection (PIP)," explained Wehrle. "The criminals who are staging and deliberately causing these accidents have been doing so because they can file claims for alleged injuries and collect big payments with little risk of getting caught.
Even though these figures are troubling, NICB is determined to put an end to this abuse of the system and continues to ramp up its fraud-fighting efforts. Through successful collaboration with NICB insurance company and law enforcement partners, the organization created a Major Medical Fraud Task Force in South Florida in 2002 to specifically focus on the issue at hand.
"That cooperative effort has resulted in numerous successes, and the criminals are feeling the heat," said Wehrle. "That's one of the reasons they are moving up the state to the Tampa and Orlando areas."
The NICB we will soon open another Major Medical Fraud Task Force in Tampa and has already begun a public awareness campaign in the area.
The report can be found on NICB's web site.
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