Defense Base Act Compensation Blog

The Modern Day DBA Casualty

Kucinich to probe AIG denial of workers’ compensation claims in Iraq and Afghanistan

Posted by defensebaseactcomp on May 7, 2009

Sabrina Eaton/Plain Dealer Washington Bureau

Cleveland Democratic Rep. Dennis Kucinich is asking American International Group to provide a subcommittee he chairs with records on its insurance claim procedures following media reports that the insurance giant inappropriately denied and delayed insurance claims from civilian contractors killed or injured in Iraq.

“Apparently, AIG is profiting both by charging unreasonably high premiums to contracting firms and denying or delaying legitimate claims of civilian workers for medical care and other services needed as a result of war zone injuries,” Kucinich says in the letter to AIG CEO Edward M. Liddy and others at the company.”These conclusions are all the more disturbing given that AIG has received enormous federal subsidies to prevent insolvency,”

Kucinich has asked AIG to provide his Domestic Policy Subcommittee of the Oversight and Government Reform Committee with data on its claims processed since 2002, as well as the profits AIG has earned from premiums, expenses from paying out claims and net underwriting gains under the civilian contractor insurance program.

Original Story here

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