Judges are to notify gardaí if court exposes claims fraud

JUDGES will immediately notify gardaí if they uncover insurance fraud in court under new guidelines, the insurance minister has said.

The Government hopes that it will catch more fraudsters and also reduce insurance premiums by frightening scam artists out of the market.

Junior Minister Michael D’Arcy told the Oireachtas finance committee that the current level of referrals from the courts was unacceptable.

‘Gardaí have investigated less than a dozen of these cases in a 14-year period so we’re trying to put in place a proper and correct pathway where if a judge says this is fraudulent that the gardaí investigate,’ he said.

A €100,000 fine and a jail sentence have also been recommended, with the new guidelines to be published by the end of September.

These will instruct judges on when to inform gardaí if they believe a plaintiff is lying in an insurance claim for injuries or damage to property.

However, the minister did not have good news for those hoping for a reduction in their premiums.

He told the committee a database that will allow insurance claims to be tracked and analysed for the first time has been delayed by a year.

The National Claims Information Database (NCID), which will be run by the Central Bank, was supposed to be up and running by next month.

It is seen as central to understanding the high cost of insurance by showing the public how many claims are being taken against insurance companies and why.

However, Mr D’Arcy said it was unlikely to be up and running until next year at the earliest.

Sinn Fein TD and finance committee member Pearse Doherty criticised the minister for the delays.

‘The fact that we won’t have the database up and running let alone churning out reports is very disappointing and doesn’t reflect the seriousness of the situation many people find themselves in,’ he said.