Concerns About Fraud May Lead To Changes In No-Fault Law.

by Friedman & Ranzenhofer, PC on April 11, 2011

in NY Insurance Issues

When a Buffalo driver is involved in an injury auto accident, his or her initial medical bills and lost wages will usually be paid by No-Fault Insurance.  No-Fault Insurance is required for every vehicle registered in New York State.  It covers the first $50,000 in medical expenses and lost wages, regardless of who was at fault for the accident.

In the past year, nine out of ten cases of suspected health care fraud in New York State reported to the Insurance Fraud Department involved No-Fault Insurance.  A total of 12,807 suspected No-Fault fraud cases were reported in 2010, down slightly from the 13,433 reported in 2009.  159 individuals were arrested in related cases in 2010.

The Insurance Fraud Bureau has proposed several changes to the No-Fault Law to help close some of the loopholes that have led to fraud and streamline the insurance process.  The Fraud Bureau’s proposals have undergone several revisions over the past year based on conversations with medical providers, attorneys and insurers.  They include some provisions that should also help to protect the rights of those legitimately injured, such as limiting examinations of an injured person by insurance doctors to locations convenient to the injured person and not allowing more than one such examination to be scheduled on the same day.

If you have suffered a personal injury in an auto accident and have any questions, we would be happy to help you.  Please call us at 716-542-5444.

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