Around 75 per cent of all insurance claims in the State are either exaggerated or bogus according to the Alliance for Insurance Reform (AIR).

The alliance believes bogus and exaggerated claims are costing Irish industry €1.5 billion per year. Mr Pat McDonagh, AIR chairman and managing director of fast food chain Supermac's, said anecdotal evidence from AIR members across the State suggested 75 per cent of claims were either bogus or overstated.

The alliance yesterday met the Tánaiste, Ms Harney, to outline its case.

Mr McDonagh said Ms Harney agreed that in compensation cases evidence should be sworn on affidavit and that if it was proven that part of the claim was false then the whole claim should fall. A spokesman for Ms Harney refused to elaborate or confirm what was said.