Rules on motor accident claims changed

Victims of accidents involving uninsured drivers will have to undergo a rigorous new set of procedures to claim compensation, in an attempt to cut down on fraudulent claims, the Minister for Transport, Mr Brennan, announced yesterday.

Claimants will be required to report accidents to the gardaí within two days, attend interviews, and will have their legal costs limited, under a new agreement between the Minister and the Motor Insurers' Bureau of Ireland (MIBI).

The new regulations are designed to safeguard against exploitative, exaggerated and fraudulent claims, Mr Brennan said, which account for approximately 10 per cent of motor insurance payouts. Currently the MIBI only catches between 2 and 3 per cent of fraudsters.

"The procedures up until now have been crying out to be made tighter and tighter. Claimants were not required to cooperate with the MIBI - they just claimed and after a period were settled up with. As a result of this agreement, if they don't co-operate, they may not get a payment," Mr Brennan said.

From May 1st, when the agreement comes into force, accident victims will have to supply information in a "rigid specific and almost legalistic format", Mr Brennan said. They may have to present themselves for interview to prove their claim and will have their legal costs limited to that of an ordinary insurer.

They will also be encouraged to deal with "minor matters" under their own insurance without having their "no claims discount" affected.

The new measures should eventually reduce insurance premiums by 7 per cent, Mr Brennan said, but it would take rigorous enforcement by the gardaí to get uninsured drivers off the road.

In 2002, the MIBI paid out almost €50 million in settlements. More than 60 per cent of claims resulted in no compensation.