Harney set for major overhaul of insurance claim procedures

TÁNAISTE Mary Harney will reveal a major change in court procedures next week to clamp down on bogus compensation cases that are costing Irish businesses €1.5bn annually.

The action plan for insurance reform to be launched by Ms Harney early next week will include a change in the way claimants will be forced to give their court evidence.

At the moment claimants can give false oral court evidence and are rarely prosecuted for perjury if they are found out. But under the new system anyone seeking compensation will have to give their evidence in a sworn affidavit and if any part of it is false then their entire case will collapse.

Ms Harney confirmed to campaigners for insurance reform yesterday that this major change will be part of her action plan.

Alliance for Insurance Reform (AIR) chairperson Pat McDonagh said they had sought a crisis meeting with Ms Harney to push for this major court reform.

“We are delighted the Tánaiste has agreed with our key recommendation because it will ultimately bring down the cost of insurance settlements and premiums,” Mr McDonagh added.

Justice Minister Michael McDowell has also given AIR a commitment that this major change in compensation case evidence will be part of the Government’s insurance reform action plan.

Three out of four of the claims paid out by AIR members were either bogus or exaggerated, according to a recent survey carried out by the Alliance. Ms Harney has asked AIR to forward her a copy of this survey.

Ms Harney’s spokesman confirmed she will be launching her major action plan for insurance reform early next week and that she met with the Alliance for Insurance Reform (AIR) yesterday.

.The Motor Industry Advisory’s Board (MIAB) recommended this week that all compensation claimants should be forced to make sworn affidavits.