The Florida state insurance commissioner has said the time has come to put an end to the state's Personal Injury Protection (PIP) coverage, commonly known within the auto insurance system as ‘no fault’.
Speaking at a Florida Chamber of Commerce Insurance
Summit, Insurance Commissioner Kevin McCarty proposed a repeal of PIP as a way to reduce fraud.
The much maligned legislation, which requires motorists to carry personal injury protection coverage including $10,000 in medical benefits, has been the subject of seven sessions at the Chamber. And McCarty said that if it can't be fixed it should be dropped.
Some critics have suggested replacing PIP with a requirement for bodily injury coverage, but McCarty claims most motorists already have coverage for injuries resulting from a crash and lawmakers would not have to develop anything to replace PIP.
The legislation, created in 2012, was intended as a way of preventing insurance fraud, one of the major factors contributing to rate rises. Yet McCarty said PIP still attracts fraudulent claims.
PIP has also attracted heavy fire from critics. Currently, the legislation regarding the coverage requires those who have been in a crash to seek treatment within 14 days. They are then allowed up to $10,000 in benefits for emergency medical conditions but there is a $2,500 cap on non-emergency conditions, prompting allegations that motorists actually receive fewer benefits under the system.
