About NYCM Insurance
To anonymously report fraud, call the NYCM Insurance SIU at 888-ALERTUS (888-253-7887)
Insurance Fraud is a crime! The first offense is subject to a fine up to $5,000 plus the stated value of the claim. One of many additional charges that may be brought as a result of Insurance Fraud is larceny or grand larceny. In addition to restitution of the amount claimed, the insured may have to pay for the expenses incurred during the investigation, as well as serve any jail time the law requires.
Here are several types of fraud:
- Inflated automobile and property repairs to cover an insured’s deductible
- Staged auto accidents
- Staged auto thefts
- Arson (responsible for up to 900 deaths and $2 billion in damages last year)
- Slip and fall schemes
- False residential and commercial burglaries
- Phony medical reports (Legitimate patients seeking medical care can get caught up in the "medical mills" that are committing Insurance Fraud. Unsuspecting patients are billed for exaggerated or unnecessary services. The patient may also receive poor treatment from unethical medical providers.)
Public awareness of Insurance Fraud has increased in the last few years. A recent Gallup poll shows that:
- 88% of Americans understand this is a major problem.
- 78% would report an instance of Insurance Fraud even if a friend or relative were involved.
- 44% knew the types of Insurance Fraud and how to spot it.
- 56% knew how to report the Insurance Fraud.
Did You Know...
Intentional misrepresentation is Insurance Fraud. Withholding or misrepresenting the correct usage of your automobile affects your premium rate.
NYCM Insurance is one of the few insurance companies that fights Premium Fraud. We have established a Special Investigation Unit (SIU) that cooperates with Local, State and Federal Law Enforcement agencies to arrest and convict insureds and claimants for insurance fraud and other related crimes.
Insurance Fraud is the second largest white-collar crime in the nation.
Ten to twenty percent of all claims are said to be fraudulent, impacting property and casualty companies, subsequently costing policyholders billions annually. This raises honest policyholders' premiums an additional $1,650 or more per year.
The Insurance Research Council’s (IRC) study puts the national average of auto injury claims containing some element of fraud at 36%. Of that 36%, only 3% are hard core, premeditated criminal acts and 33% involve "opportunistic" doctors, lawyers, body shops or insureds trying to take advantage of the claims process.
Our goal at NYCM Insurance is to pay legitimate claims quickly and fairly and to resist paying those that would take advantage of our honest policyholders. We will continue to be aggressive in our fight against Insurance Fraud. Please help us by reporting any suspected fraudulent actions.