Fraudulent, Padded PIP Claims Add Up To $7.7B In Excess Payments

A new study from the Insurance Research Council (IRC) estimates that claim fraud and buildup added between $5.6 billion and $7.7 billion in excess payments to auto injury claims paid in the United States in 2012. The excess payments represented between 13 percent and 17 percent of total payments under the five main private passenger auto injury coverages. Twenty-one percent of bodily injury (BI) claims and 18 percent of personal injury protection (PIP) claims closed with payment had the appearance of fraud and/or buildup in 2012, according to file reviewers.