Minister pledges crackdown on bogus claims

BEFORE the end of the year, judges will be expected to refer suspected false insurance complaints to gardaí for investigation under Government plans to crack down on bogus claims.

A so-called ‘fraud round table’ is working on outlining a clear procedure in cases where a judge determines fraud has taken place. It will also outline what insurers should do where they believe a case is fraudulent.

Minister of State Michael D’Arcy has said he expects the procedure to be in place before the end of the year and believes it will provide an important tool to tackle what he termed a “have-a-go” attitude towards insurance claims.

He told the Irish Independent: “We want to improve the pathways, so that potentially, if the pathways improve, that the judge calls in gardaí.

“(That the judge can say) ‘I’m satisfied that there is fraud or exaggeration,’ to call in gardaí and tell them to take these people away and question them in relation to this matter.

“You’re now into a criminal sanction with pretty substantial fines and/or jail time. The Garda will then send a file to the DPP and the DPP will decide whether to prosecute.

“For too long, an insurance claim has been a one-way bet that you take the chance on getting a large payout.

“If it doesn’t work out, there is no sanction, even if you have been fraudulent or if you’ve exaggerated a claim.

“That has to end.”

It is envisaged that the guidelines will be in place by the end of this year, Mr D’Arcy said.

“The Department of Justice is liaising with the Courts Service, with the judiciary, with the Garda and the DPP to put the proper pathways in place, so that type of one-way bet – having a go with no consequence – will end,” he said.

Legislation is in place which allows a criminal case to be pursued in relation to fraudulent claims, with sanctions including fines of up to €100,000 and jail sentences.

The Government has faced criticism for what opponents have said is its slow progress on the issue of tackling rising insurance costs.

Mr D’Arcy defended the work being carried out and said the “heavy lifting” in relation to a number of measures was continuing.

The minister expressed a concern about insurance companies part-funding a new Garda unit to deal with insurance.