New Law Equals Fake Accidents With Federal Crimes

Luisanna’s bill, which will now punish staging accidents on the roads, aims to protect truck drivers.

The Highway Accident Fairness Act of 2021 was viewed by the House of Representatives on December 7. The bill would make it a federal crime to fake an accident with the intention of fraudulently seeking financial damages.

The bill is supported by the American Trucking Association (ATA).

US Congressman Garrett Graves belives that the bill will benefit drivers and protect them from fraud.

“Louisian’s drivers pay one of the highest insurance in America. This is unacceptable and solution doesn’t require rocket science. Our bill will prevent further increases in the cost of driving and doing business in Louisiana. This single $ 4,7 million settlement resulted in an increase in all of our insurance rates. Our laws prevent fraudulent activities, improve road safety and help to have lower insurance rates for drivers. Thanks to Representative Cuellar for joining the effort, the American Freight Forwarders Association and all those who support it,” he said.

So far, 40 people were charged with  taking part in a large-scale criminal gang that fraudulently staged more than 100 semi-truck accidents in the New Orleans area, one of which resulted a $ 4,7 million compensation. Currently 29 people are convicted.

“We thank the representatives of Cuellar and Graves for presenting the common sense of this bill to suppress rampant lawsuits against the cargo industry. Phased accidents, third-party litigation funding and disproportionate nuclear verdicts are turning civil justice into a profit center, jeopardizing highway safety and increasing costs and pressure on our nation’s supply chain,” said ATA President and CEO Chris Speer. “This law will restore balance and fairness to the system and help ensure that justice leads to litigations and not to speculation and windfall profits.”