NY Fighting Insurance Fraud By Going After Loopholes In No Fault Law

New York has a real issue with the fact that it has become a hub for auto insurance fraud. The state is one where people are using the no fault insurance law to scam auto insurance companies out of millions of dollars. The current law had a lot of loopholes that were being exploited by criminals to make a quick buck.
The changes could make a real dent in the number of insurance scams that occur in the state. One great change is that the law will no longer force auto insurers to pay out claims for medical care that was not performed. This will mean that there will need to be documented proof of all medical care that is performed on accident victims.
Doctors and other medical professionals will also be given strict deadlines in regards to providing documents showing that a victim needs medical treatment. For example, if a patient needs at home care then a doctor’s note would be necessary in the first month or two to show that the medical expense is in fact a necessary one.
This will help to make the entire auto insurance claims process go much faster. If claims adjusters are able to have all of the documentation that they need in a timely manner then the compensation checks can be cut much faster.
Another help to auto insurance companies is that minor clerical errors involving paperwork will excuse them from problems during court and arbitration proceedings. In many situations, there are issues with claims because the paperwork has errors. For example, there may be paperwork that was left out or the claim may have had expenses denied because of issues. Insurance companies would not get in trouble for these errors.
In the future, the whole system might need to be re-vamped because there could be more changes made to even further speed up the process. The lengthy process is one reason why so many criminals have been able to get away with scamming insurance companies.
They know how to use the system to the advantage and find weak doctors and medical clinics who will help them commit the fraud. If there are deadlines in place and documentation is required then more red flags can be raised for claims that allude to fraud.  One major red flag is medical treatments that are not well documented. Hopefully, the state can close additional loopholes in the future.