New York is second in the nation, only behind California, for questionable workers compensation insurance claims.
New York jumped to second in 2012 from fifth in 2011, the New York Insurance Association reported recently.
“Workers compensation insurance fraud is a serious problem in New York,” Ellen Melchionni, president of the New York Insurance Association said. “Fraud drives up workers compensation rates. The state and insurance industry need to remain vigilant in cracking down on those looking to cheat the system,” she said in a statement.
The association cited an analysis for the National Insurance Crime Bureau analysis, showing that the number of New York questionable claims reported in 2012 was more than double the questionable claims reported in 2011. There were 344 reported in 2012 versus 161 in 2011.
NICB analysis also shows that questionable claims in 2013 are on pace to exceed the number in 2012. According to data available for the first half of 2013, 183 questionable claims were reported between January and June.
“The growing rate of questionable workers compensation claims is alarming,” Melchionni said. “Fraud takes away from workers compensation serving its intended purpose of protecting injured workers.”
The New York Insurance Association is a state trade association that has represented the property and casualty insurance industry for more than 130 years.
The National Insurance Crime Bureau is a not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, training, legislative advocacy and public awareness.
Source: NYIA, NICB