Suspected cases of insurance fraud are reported

The public have reported 1,003 cases of suspected insurance fraud to a confidential telephone line since it opened eight months…

The public have reported 1,003 cases of suspected insurance fraud to a confidential telephone line since it opened eight months ago, the Irish Insurance Federation (IIF) has revealed.

The service "Insurance Confidential" was set up in February as part of the campaign against insurance fraud.

The IIF estimates insurance fraud will cost €100 million this year.

Of the 1,003 cases dealt with approximately two-thirds of callers were male and one-third female; 63 per cent were motor claims; 22 per cent non-motor personal injury (employer's and public liability); 8 per cent property and 7 per cent other types.

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The IIF chief executive, Mr Michael Kemp, said yesterday: "The Insurance Confidential telephone helpline has received reports of insurance frauds from people connected to the suspected fraudster in a number of ways, including relatives and friends, neighbours, customers, employers and ex-employers, employees and work colleagues."

The level of public interest in the phone line had made it a resounding success, he said. There was a strong level support for the IIF's anti-fraud campaign and a real public desire for action against fraudulent claimants.

"In our view, the myth that insurance fraud is a victimless crime and that no one pays the cost of dishonest or exaggerated insurance claims must be exposed for what it is - a fallacy; and one that costs honest policy holders millions of euro every week," Mr Kemp said.

The estimated €100 million cost of insurance fraud this year was an unnecessary claims cost facing insurers and was a significant cause of rising insurance premiums for persons and commercial policy holders alike, he said.

Since the anti-fraud campaign started, the Government had progressed its responsibility on the issue also. On July 4th, the Minister for Justice, Equality and Law Reform, Mr McDowell, announced that the Government had approved the heads of the Civil Liability and Courts Bill to radically reform the law on personal injury actions.

Only when this legislation was enacted, would the public begin to truly believe that the fraudulent and exaggerated claims environment was being taken seriously by our legislators, Mr Kemp said.

When the telephone line started, the Tánaiste, Ms Harney, described the reporting of insurance fraud as "a patriotic duty". Two weeks ago the IIF anti-fraud campaign was a category winner in the Graphic Design Business Association Awards, receiving an "Irish Design Effectiveness Award".

Mr Kemp said he wanted to thank the members of the public who had come forward so far.

Although Insurance Confidential was a great success, they still needed more information and he appealed to anyone with information about fraudulent or exaggerated claims to phone 1890-333333.