According to a new study by the Insurance Research Council (IRC), a division of the American Institute for CPCU and the Insurance Institute of America, losses in Personal Injury Protection (PIP) claims rose by 79 percent from 1995 to 2000 in New York. This is compared to only 25 percent in all no-fault states.
The increase in New York was fueled by growth in the number of claims and in the average amount paid per claim. The number of PIP claims per 100 insured cars increased by 9 percent in New York for the 1995-2000 period. Over the same period, the average amount paid per PIP claim in New York rose 65 percent, with a 20 percent jump in 2000.
Claimants in New York State, specifically those in the New York City metropolitan area, reported more extensive medical treatment than claimants in all no-fault states, even though they reported similar injuries. Attorneys played a more significant role in the claims process in New York than in all no-fault states. In addition, New York claimants who waited more than 30 days to report their injuries to their insurance companies were more likely to have sprains and strains as their most serious injury and seek certain types of medical treatment, but less likely to experience a period of restricted activity.
According to statistics from New York State Insurance Department, reports of suspected fraud in no-fault claims nearly tripled from 1995 to 2000.
Topics Trends Auto New York Profit Loss Claims
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