Uber has filed a lawsuit alleging that a coordinated fake car accident scheme is costing them millions, with colluding doctors and law firms abusing New York's no-fault insurance laws. The suit claims that unscrupulous actors are coercing passengers into unnecessary medical procedures following minor accidents to inflate claims. Uber argues this fraud is enabled by the state's high minimum injury coverage for rideshare drivers. Similar fraud accusations were previously raised against medical providers by the American Transit Insurance Company, indicating an extensive and complex web of alleged exploitation in the injury claim system.
According to the suit, filed Thursday in Brooklyn, New York, the ring of conspirators take advantage of the state's unique insurance laws to force Uber to pay for "fictitious" or "exaggerated" medical conditions of passengers that were involved in "purported or actual minor vehicle collisions."
Uber claims that the conspirators are abusing this aspect of insurance law - with lucrative results. That's because New York City regulations require cabbies and rideshare drivers to carry personal injury coverage as high as $200,000, which is four times the $50,000 minimum for individual drivers.
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