Tackling insurance fraud should be a priority

THERE are many issues on the government and legislature ‘ to do’ list. There always is and there always will be.

Some are priorities, some less so. Some could be categorised as nice to do, others as must do.

Obviously any required legislation post-Brexit comes under the category of must do, immediately.

The crisis and that is what it is, in our insurance industry should fall under the category of must do, but it seems to be well down the list of priorities and is being put on the long finger.

This is immensely frustrating for business owners who are being squeezed by spiralling insurance premiums and some are facing the very real prospect of having to close up or continue without adequate insurance cover.

Spiralling insurance premiums are putting at risk activities as diverse as street festivals, farmers’ marts, tidy town efforts, children’s play centres and sports events.

In the past two years alone, 75 street festivals have collapsed due to unsustainable rises in public liability insurance costs, says the Association of Irish Festivals and Events. Farmers’ marts are threatened with closure due to drastic rises in insurance costs. One business owner revealed this week that his insurance premium has risen by €36,000 in the past eight years.

A claims culture exists in Ireland, but it is a number of years since Supermacs founder Pat McDonagh exposed a number of bogus claims in his restaurants and how such claims were affecting the viability of many businesses as the cost of insurance cover was becoming unsustainable.

More regularly we are reading of questionable claims being thrown out by court and costs being awarded against the claimants, but these cases are still reaching court and businesses are living under the shadow of bogus claims for years as they proceed through the legal system.

The insurance industry have pleaded with Govnernment to tackle the problem which is squeezing businesses to the pin of their collar. They have asked for a Garda Fraud team to investigate and prosecute those with bogus insurance claims.

We have seen the cases thrown out, but there have been few if any prosecutions, even for drivers who have clearly staged accidents and personal injuries claims.

It is not on. Government should be on the side of people in this matter.

It is costing us all in our pockets with inflated insurance premiums.

There are battles that can be won if only the resolve was there.