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BOROUGH PRESIDENT MARKOWITZ AND COUNCIL MEMBER YASSKY ANNOUNCE BILL TO CRACKDOWN ON AUTO-INSURANCE FRAUD

Photographs by Andy Kadin

On Tuesday, August 16, Brooklyn Borough President Marty Markowitz and Council Member David Yassky joined Council Members Michael Nelson and Charles Barron and Assemblyman James Brennan on the City Hall steps to announce the introduction of a bill to crack down on auto-insurance fraud at so-called “medical mills.” Under the law, auto-insurance medical providers who receive more than 50% of their revenue from no-fault claims will be licensed by the City’s Department of Health and Mental Hygiene, with violations bringing strict penalties, such as fines and jail time.

Brooklyn has a disproportionate share of no-fault “medical mills,” which falsify accident claims in order to exploit the state’s no-fault insurance system. The abuse of the insurance system has had a direct effect on automobile insurance costs, placing Brooklyn ’s rates among the highest in America . The nationwide average to fully insure a car is $817 annually, whereas in Brooklyn the average cost is $4,092. Law-abiding New York drivers pay 61 cents on every insurance dollar toward false claims.

“ Brooklyn and the city of New York are doing our part to eliminate no-fault insurance fraud. New York State is doing its part,” said Markowitz. “Now, it’s up to insurance providers to join us and do their parts, by becoming responsible corporate citizens that don’t burden residents with their costs. And it’s up to the medial mills to stop ripping off honest, hard-working New Yorkers. Your game is over—it’s time to go out and make an honest living!”

“For too long, New York City has been a haven for crooks who abuse our auto insurance system, and New Yorkers have paid the price,” said Yassky, who called Markowitz the “father of this legislation.” “We know how the scams work, now we need laws in place to catch the scammers. If this bill passes, there will be nowhere to hide for these despicable criminals.”

In photo: Brooklyn Borough President Marty Markowitz joins Council Member David Yassky to announce the bill to eliminate auto-insurance fraud.