NICB Report Suggests Link between Suspicious Vehicle Collision Claims and Bodily Injury Claims

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Apr 26, 2011, 09:00 ET

Florida, California, New York, Texas and Maryland Lead States

DES PLAINES, Ill., April 26, 2011 /PRNewswire-USNewswire/ -- The National Insurance Crime Bureau (NICB) today released a new analytical report that examines national vehicle collision questionable claims (QCs) from 2009 and 2010. The report compares those QCs to bodily injury/personal injury protection (BI/PIP) insurance claims submitted during the same period—January 1, 2009 through December 31, 2010.

Analysis shows that the number of BI/PIP insurance claims increased 15 percent between 2009 and 2010—from 3,692,286 to 4,245,851. Vehicle collision QCs increased 17 percent in that same period—from 11,391 in 2009 to 13,333 in 2010. Bodily injury accounted for the highest percentage of any loss type of BI/PIP claims—46 percent in 2009 and 55 percent in 2010.

The full report is at: http://www.nicb.org/File%20Library/Public%20Affairs/VehicleCollisionQCs2009-2010.pdf

In 2009, there were 309 vehicle collision QCs for every 100,000 BI/PIP claims, while in 2010 there were 314 vehicle collision QCs for every 100,000 BI/PIP claims—a 2 percent increase. In 2009, 13 percent of all QCs were vehicle collision QCs; in 2010 that number increased to 15 percent.

Florida, California, New York, Texas and Maryland were the top states generating the most vehicle collision QCs in 2010. The cities with the most vehicle collision QCs in 2010 were New York, Tampa, Orlando, Los Angeles and Houston.

These are all cities that are covered by existing NICB Major Medical Fraud Task Forces, which were established to target the growing fraud associated with auto policies and illegitimate bodily injury claims. Each task force brings together in one location investigators and analysts from NICB, the insurance industry and law enforcement.

Although the data is not conclusive evidence of fraud, the 17 percent increase in questionable vehicle collision claims and the 15 percent increase in BI/PIP claims suggests a correlation. This corresponds with the increased level of vehicle-related insurance fraud activity NICB investigators are seeing in "no-fault" insurance states like New York and Florida.

Anyone with information concerning vehicle theft and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422), texting keyword "fraud" to TIP411 (847411) or by visiting our web site at www.nicb.org.

About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation's leading 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. The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $317 billion in insurance premiums in 2010, or approximately 80 percent of the nation's property/casualty insurance. That includes more than 93 percent ($151 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.

SOURCE National Insurance Crime Bureau