US Congressmen Garret Graves and Henry Cuellar have introduced a bill that would make it a federal crime to stage a vehicle collision and fraudulently claim financial damages.
Graves (R-LA) and Cuellar (D-TX) say the legislation, the Highway Accident Fairness Act of 2021, would improve the safety of truckers and drivers on highways and protect trucking companies from the financial burden of defending or the settlement of fraudulent insurance. claims resulting from collisions in stages.
According to a statement from Cuellar’s office, the bill:
- Ensure fair and rapid recovery for victims of road accidents with legitimate claims
- Provide for the review by the Federal Court of interstate cases of national importance falling within the diversity jurisdiction
- Maintain stability in the movement of interstate commerce and protect the public from the security risk of staged collisions
- Protect motor carriers and insurers from the financial burdens of defending, settling, or liability for fraudulent claims resulting from staged collisions
- Protect law enforcement agencies from using resources to deal with the consequences of staged collisions
The legislation is supported by the American Trucking Association.
Graves said the bill would lower auto insurance rates for Louisiana drivers. Graves cited a 2015 staged accident in New Orleans that resulted in a $ 4.7 million settlement against a trucking company.
“Louisiana drivers pay some of the highest insurance rates in America,” Graves said. “This is unacceptable and the solutions do not require rocket science. Our bill will prevent criminal networks from further increasing the costs of driving and doing business in Louisiana. “
USA Fraud Law
Was this article helpful?
Here are other articles you might like.
Interested in Fraud?
Receive automatic alerts for this topic.