Suspect claims withdrawn in face of garda investigation

A number of suspected fraudulent insurance claims have been withdrawn before going to court after a crackdown by gardaí.

Two-thirds of people who were informed by gardaí that their insurance claim was being investigated for being potentially fraudulent ended up withdrawing it, according to Michael D’Arcy, the minister of state at the Department of Finance.

Mr D’Arcy, who has responsibility for financial services and insurance within the department, said gardaí were calling to people’s homes when fraud was suspected.

Insurance Ireland’s fraud group flagged cases that they thought might be fake. After garda officers called to the home of each claimant, the majority of claims were dropped.

The minister said he had written to recently appointed Garda Commissioner Drew Harris to discuss insurance reform — including the proposed establishment of a dedicated unit looking into fraudulent claims — but had not yet received a response.

However, he added that Detective Chief Superintendent Pat Lordan, head of the garda’s national economic crime bureau, had told him the force was taking a more proactive approach.

“Two-thirds of the claims that they have chased up, that they have followed up, have been withdrawn,” said Mr D’Arcy. “So that’s something that I think is a very positive development.”

The minister is to meet with Mr Harris next month to discuss the prospect of setting up a fraud unit within the force. The unit was recommended almost two years ago by the Personal Injuries Commission as one way to bring down the cost of premiums.

Mr D’Arcy supports a garda fraud unit but does not think its €1m annual cost should be funded by the industry, as suggested by insurance groups.

He said: “I don’t believe it’s appropriate that private industry funds any portion of An Garda Síochana.

“It would be a precedent... it hasn’t happened before. But it’s a matter I’m satisfied we can get around.”

He added that investigations into claims shouldn’t be left to the courts and efforts should be made to deal with them earlier.

“We shouldn’t be trying to figure these out in the courts, at the last stage,” said Mr D’Arcy. “We should be trying to deal with them earlier.”

Mr Justice Nicholas Kearns, who is the chairman of the Personal Injuries Commission, says that a dedicated policing unit works well in the UK, where the Insurance Fraud Enforcement Department (IFED) is funded by insurance companies.

He said: “There have been no suggestions the IFED in the UK have operated in anything other than a fully professional and fully independent manner.”

A dedicated garda fraud unit is also supported by Brokers Ireland, the lobby group that represents 1,250 brokers nationwide.

“The establishment of a fraud investigation bureau along the lines of the insurance fraud enforcement department in the UK needs to be done without further delay,” said Cathie Shannon, director general of insurance at Brokers Ireland, in advance of the association’s annual conference.

“Genuine claimants are being made to feel like they are engaging in fraudulent activity by claiming what is rightfully theirs, because of continuing fraud within the market.”