§ 846-j. Legislative findings. Motor vehicle theft and motor vehicle
insurance fraud is a major problem in this state costing honest motor
vehicle policyholders billions of dollars annually. As the cost of motor
vehicle insurance continues to rise, this essential coverage has become
less affordable and more out of reach for many New Yorkers. Between
nineteen hundred eighty-five and nineteen hundred ninety-two, New York
has seen over a fifty percent increase in the number of motor vehicle
thefts. Over one hundred sixty thousand motor vehicles are stolen
annually in this state at a cost of over seven hundred million dollars.
Between nineteen hundred eighty-six and nineteen hundred ninety-two, New
York has also seen a one hundred sixty-six percent increase in the
number of reported fraudulent claims; estimates have put the cost to
policyholders for fraudulent activities at ten percent of premiums paid.
The legislature acknowledges a direct relationship between the incidence
of motor vehicle theft, motor vehicle insurance fraud and the cost of
motor vehicle insurance premium rates. The legislature finds, therefor,
that to reduce the overall cost of motor vehicle insurance in this
state, measures must be enacted which specifically address the incidence
of motor vehicle theft and motor vehicle insurance fraud. This
legislation creates the motor vehicle theft and insurance fraud
prevention demonstration program, the goals of which are as follows: to
provide an integrated means to prevent, deter and reduce the incidence
of motor vehicle theft and motor vehicle insurance fraud by developing
and providing funding for demonstration programs which include education
on motor vehicle theft and insurance fraud prevention, programs on motor
vehicle theft and insurance fraud prevention and specialized law
enforcement units to combat motor vehicle theft and insurance fraud.