Insurance firms urged not to settle suspect claims
Ms Harney made her plea at the launch of the Irish Insurance Federation's (IIF) anti-fraud publicity campaign, which is seeking the public's help by setting up a new phone hotline. "There is a long tradition in Ireland of not being an informer for very obvious historical reasons, but I don't see this campaign in that light," the Tánaiste said.
Many potential US investors have raised the high cost of insurance with her and it is damaging the good name of this country, Mr Harney said. "We have to ensure insurers don't settle claims where they suspect they may be fraudulent it may seem less expensive to settle in the short-term, but I appeal to insurance companies not to settle," she said. Ms Harney said reform of the insurance market is her number one political priority, and she is committed to implementing the recommendations of the Motor Insurance Advisory Board (MIAB) report.
The IIF estimates that insurance fraud will cost policy holders at least 100 million this year. IIF chief executive Michael Kemp said the increasing claims costs are pushing up premiums. "This is not a victimless crime, these fraudsters are ripping off claimants that is why we are seeking the public's help in tracking down fraudsters," Mr Kemp said. But the Alliance for Insurance Reform (AIR) questioned the bona fides of the insurance industry and claimed they were only setting up this hotline now because the heat was on them. AIR spokesman Gerard McCaughrey said insurance companies were too prepared to settle on the steps of the court. AIR does not believe the insurance hotline will work because there is no reward and there will be no incentive for people to inform.
But the Irish Insurance Federation insisted that the public would respond to its campaign because it would mean cheaper premia, and rejected claims that is settles claims too easily.
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