The Motor Insurers’ Bureau of Ireland (MIBI) has released a report outlining its commitment to reducing the level of motor insurance claims fraud activity in the republic.
According to the report, the total value of insurance claims fraud in Ireland is estimated at €200 million annually. “Effectively that is a cost that is being borne by all law-abiding policyholders. The various insurance providers are required to pass on claims-related costs to their policyholders via their premiums each year,” it said.
The report stressed that while the figure relates to all forms of insurance, “it has been widely established that the motor insurance sector is particularly susceptible to claims fraud.” Approximately €50 on every motor insurance policy is believed to go towards covering the cost of fraudulent claims yearly.
In addition, the MIBI estimates that Irish motor policyholders also contribute about €30 on every policy towards the cost of claims made by the victims of uninsured and untraced drivers. “When one combines the costs of claims fraud and uninsured driving, it is clear that this a significant burden that is shouldered by the honest members of the motoring general public,” noted the report.
The MIBI – which said as many as one in every eight insurance claims it handles are suspicious – has set out the following commitments:
- Undertaking a comprehensive evaluation for every claim received and flagging those with insufficient information, unsupported assertions, or inconsistencies
- Thorough investigation of flagged claims using internal and external investigative resources and scientific analysis
- Working closely with An Gardaí Síochána around all relevant cases
- Legally contesting claims in cases where the evidence does not support the claim being made
- Asking the Gardaí to investigate any malicious claims without merit
- Developing a new system – which will support automatic number plate recognition – to provide more information about uninsured drivers on Irish roads
- Working closely with the Government and other relevant State authorities
The abovementioned system is being developed by Insurance Ireland and the MIBI in cooperation with An Gardaí Síochána, the Department of Transport, the Department of Justice, and the wider insurance industry. It aims to further enhance An Gardaí Síochána’s ability to stop and confiscate uninsured vehicles at the side of the road.
“Essentially we have adopted a zero-tolerance approach to claims that are not real. We believe these steps are necessary as the claims culture is continuing to thrive,” commented MIBI chief executive David Fitzgerald.
He described insurance fraud as a “scourge” on Irish roads. “It not only adds to the cost of insurance premiums, we also estimate that hundreds of injuries are sustained every year because of claims fraud-related activity.”
A not-for-profit company established to compensate victims of road traffic accidents caused by uninsured and unidentified vehicles, the MIBI receives thousands of insurance claims every year (2,922 in 2016) and makes annual payments in the region of €55 to €60 million.
The organisation has generated claims fraud savings in excess of €1.8 million during the first six months of 2017. According to the MIBI, a further 158 new cases have been flagged as suspicious and are being thoroughly investigated.
“We are determined to do everything we can to help stamp out claims fraud. We will make it as difficult as possible for fraudulent claimants to succeed,” said Fitzgerald.
He added that providing false or misleading information relating to a claim is punishable by up to 10 years in prison and/ or a fine of €100,000.
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