February 24, 2011 by Canadian Underwriter
The U.S. National Insurance Crime Bureau (NICB) reported a 24% spike in ‘questionable claims’ being referred to it by its member insurance companies between 2008 and 2010.
NICB member insurance companies refer questionable claims to NICB for closer review and investigation based on one or more indicators of possible fraud.
In 2008, a total of 74,146 questionable claims were referred to NICB. This figure increased to 84,407 in 2009. The number increased another 8.7% in 2010, up to 91,797 questionable claims.
In vehicle claims, auto glass fraud and inflated towing/storage bills proved to be hot spots for referral reasons in 2010. Questionable claims for auto glass increased by 450%, whereas claims referred to the NICB for towing or storage fees increased by116%.
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