Le Lézard
Classified in: Transportation
Subjects: LAW, ATY

Barry's Auto Body sues Tri-State Consumer Insurance Company, Inc., alleging they engaged in unfair claims practices.


STATEN ISLAND, N.Y., Apr. 2, 2018 /PRNewswire-PRWeb/ -- Barry's Auto Body filed a lawsuit in New York State Supreme Court (Case #151529/2017) against Tri-State Consumer Insurance Company, Inc., Gabe Deri, Louis Simo, Basit Irfan and IANET Corporation, alleging that its client's repair work was delayed or impeded by their insurance company and/or its adjusters.

The lawsuit cites: Breach of Contract, Violation of General Business Law §349, Deceptive Business Practices in Violation of General Business Law §349, and Tortious Interference With Business Relationship as the causes of action against the defendants.

Barry's Auto Body alleges that the defendants: "...jointly and severally impeded and delayed fair settlement of the Assignor's claims by using improper costs schedules, setting arbitrary price caps, refusing to negotiate in good faith on labor rates, refusing to pay appropriate amounts for paint materials and parts, and otherwise failing to inspect or re-inspect the vehicles within the time frames specified by regulation..." in order to steer consumers to auto body shops in their Direct Repair Program and others thereby causing damage to both the insured and the auto body shop.

The Insurance Information Institute ? an independent source of objective information on insurance -defines Direct Repair Program (DRP) as "a network of auto repair shops and dealerships approved by an insurer." Their website states, "Consumers have the right to go to the auto shop of their choice and to get their own repair estimate. They are not required to use a direct repair program offered by their insurance company."

The suit also alleges that the defendant "insisted" on using parts that are not Original Equipment Manufacturer parts in its estimates which, according to the Insurance Information Institute website, violates consumers' rights.

According to III's website, "Insurance companies cannot require a policyholder to use only certain kinds of auto repair parts."

Said Barry Crupi, owner of Barry's Auto Body, "Direct Repair Programs, which can go by many names, were created to keep the cost of vehicle repair down and to make it easier for consumers. However, some insurance companies are pressuring policyholders to use "after-market" or generic parts in vehicle repair even when those parts are known to be inferior. It's important that policyholders understand their rights when it comes to auto body claims. They pay their insurance premiums believing that their insurance carrier will protect them. Unfortunately, there are many insurance companies and auto body shops willing to cut corners to preserve their own bottom line at the expense of the consumer.

"Insurance companies and auto body shops are regulated to insure public safety. I am obligated morally and by law, to restore vehicles to a safe to operate condition. This is not the first time an insurance company tried to pressure me into cutting corners on a vehicle repair and it will likely not be the last which is why it's important for consumers to know their rights."

About Insurance Information Institute ? http://www.iii.org

For nearly 60 years, the Insurance Information Institute (I.I.I.) has been the leading independent source of objective information, insight, analysis and referral on insurance for a wide range of audiences, including: Consumers, insurance professionals, the media, government and regulatory organizations, educational institutions and students.

The I.I.I.'s mission is to improve public understanding of insurance?what it does and how it works.

The I.I.I. is an industry supported organization, but does not lobby for insurance businesses; instead, our central function is to provide accurate and timely information on insurance subjects.

 

SOURCE Barry's Auto Body


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