Fraudulent road traffic accident claims are costing insurance companies an estimate €90million a year, a spokesman for the industry has said.
Cyril Moloney, on behalf of Allianz Ireland, was speaking after a man, described by a judge as "a liar" and a person not to be trusted, had lost a €60,000 damages claim for injuries he allegedly suffered in a road traffic accident in 2014.
Barrister Grainne Larkin told Edgars Peka he was being untruthful to the court when he denied having failed to disclose a previous accident for which he had been compensated to the tune of €10,000.
Ms Larkin, who appeared with Newman Solicitors for Allianz Insurance and its insured, Stuart Scott, of Clonuske Park, Balbriggan, Co Dublin, told the court that when asked in writing prior to the case if he had been involved in any previous accident he had confirmed he had received €6,500 for an accident in 2013.
In evidence in the Circuit Civil Court, Mr Peka told Ms Larkin that this had been the only accident he had been involved in apart from the one before the court for which he was seeking €60,000 damages.
Ms Larkin had told the court that liability had been admitted in the September 2014 accident but the defendant was questioning the extent of Mr Peka’s injuries and his credibility.
In cross-examination by Ms Larkin, Mr Peka conceded that he had failed to disclose the fact that he had another injury arising from a road traffic accident in 2015 for which he had received compensation of €10,000.
Mr Peka, a Latvian national, with an address at Belfry House, The Oaks, Ridgewood, Swords, Co Dublin, had claimed €60,000 damages for injuries arising from a rear ending at a roundabout near the Pavillions Shopping Centre Swords in September 2014.
He claimed he had been driving his car when struck from behind and suffered injuries to his lower back and afterwards had developed sciatica for which he had been referred to a consultant orthopaedic surgeon.
Mr Peka claimed his consultant had recommended he receive facet joint and epidural injections and claimed that he still remained on the public waiting list to receive the injections.
Following Mr Peka’s evidence to the court Ms Larkin said she had a number of witnesses to confirm certain matters for the court about the previous undisclosed accident but Judge Jacqueline Linnane said their evidence would be unnecessary.
Fraudulent claim
Judge Linnane, in dismissing Mr Peka’s claim and awarding costs against him, said she had been satisfied he had brought a fraudulent claim. The judge described Peka as a liar and a man not to be trusted.
After her judgment, Cyril Moloney on behalf of Allianz, issued a statement in which he said the outcome of the case vindicated the company’s zero tolerance stance with potential fraudsters who may either have exaggerated their case or made spurious claims.
“Insurance fraud has grown with one in 10 road traffic accident claims in Ireland now thought to be spurious or exaggerated,” Mr Moloney said.
He said Insurance Ireland had suggested that each motor policy be increased by €50 to cover the cost of fraud. With an estimated 1.8 million motor policies underwritten in Ireland each year this placed the annual cost of traffic accident fraud to the industry at an estimated €90million.
Mr Moloney said Allianz was committed to protecting customers against fraud and protecting their premiums. This year alone Allianz had challenged more than 1,500 court claims.
“Allianz Ireland will continue this approach to insurance fraud and this is backed up by recent and continuing further investment in people and technology,” he said.