Increased Penalties for Faking Auto Accidents
The state Senate passed legislation to crack down on auto insurance fraud this week, just after a fraud ring was busted for faking accidents and reaping the financial rewards through insurance companies. The legislation will create a new felony law, making it a serious crime to stage an auto accident. Conviction under the law will warrant up to 7 years in prison.
Insurance fraud is said to cost the people of New York more than $1 billion each year. And it isn’t just people staging accidents that get in on the action. According to the NY Daily News, the Department of Financial Services has “launched a crackdown” on medical professionals that also take part in the fraudulent schemes.
The Department sent letters to 135 doctors in the NYC area after their billing practices “raised red flags”. To substantiate those bills being submitted to insurance companies for reimbursement, the agency requested supporting documentation from the doctors, proving the bills were legitimate.
“The real victims of auto insurance fraud are every taxpayer and every driver that must pay some of the highest insurance premiums in the country,” said Dean Skelos (Sen. R-Nassau). As auto accident insurance fraud climbs, insurance companies are forced to increase premiums in order to pay for the crimes, punishing everyone who insures a vehicle.
The GOP-controlled Senate passed the legislation that will now go to the Assembly, where it isn’t clear if the more liberal chamber will see eye to eye with the Senate.
When people fake auto accidents, everyone pays, not only financially, but in dealing with the insurance company after a legitimate accident. These cases of fraud help to explain why insurance companies demand so much documentation when filing an injury claim.
If you are hurt in an auto accident and are forced to deal with an insurance adjuster, you can often tell that many of their policies are in place in order to prevent insurance fraud. Even their level of suspicion can sometimes be attributed to this. But when you are injured and in pain, the last thing you want to deal with is someone being suspicious of your injuries and entitlement to compensation.
The attorneys at Omrani & Taub, P.C. know what you are going through and understand the frustration related to working with the insurance company after an auto accident. We’ve helped numerous people get compensation for their injuries and we may be able to help you.
Contact us today to discuss the details of your case and how we may be able to assist you in getting money for your medical costs, your pain and suffering, and even the time you’ve missed from work. Contact us online or by calling (212) LAW-SUIT or (212) 529-7848.
