Bogus claims costing insurance industry €100m

Insurance fraud is costing the industry over €100 million annually, according to the Irish Insurance Federation (IIF).

The IIF today launched a new campaign aimed at combating bogus personal injury claims and called on the Government to introduce tougher legislation to deal with those guilty of committing fraud.

The campaign will run a series of hard-hitting posters and radio advertisements urging people to report suspect claims to a confidential hotline.

President of the IIF, Mr Ian Stuart, said it is a myth that insurance fraud is a victimless crime and that no one pays the cost of dishonest or exaggerated claims.

Bogus claims increase the cost to insurance companies, which in turn increases premiums for policyholders. Two per cent of the average premium is down to costs paid out in bogus claims, Mr Stuart said.

"With the launch of our campaign, we are bringing the fight to the fraudsters," he said.

Mr Stuart said: "Our legislators have a prime responsibility to address the criminal law on fraud, specifically in regard to false or exaggerated claims."

The IIF wants the falsification of insurance claims forms to be equated with perjury, and made subject to the same penalties.

Attending the launch, the Tánaiste, Ms Harney, said fraudulent claims were putting jobs and the competitiveness of the economy at risk.

Ms Harney said the extent of bogus claims in this State was a "national embarrassment."

She called on people to inform on suspect claims as an act of patriotism.