New move to crack down on insurance fraud
The measure has been introduced by the Motor Insurers Bureau of Ireland (MIBI) as one of several new safeguards to its claims operation in order to crack down on fraud.
The MIBI is a private company funded by motor insurers to compensate drivers involved in accidents with uninsured or untraced drivers, as well as dealing with all accidents involving foreign drivers.
Last year, the MIBI paid out €70m in compensation to victims a reduction of €21m on the total payout in 2002.
However, the company estimates that 3% of all cases are fraudulent even though the true figure may be even higher. In 2003, the MIBI received a total of 3,970 claims comprising of 2,000 cases involving accidents with uninsured drivers, 870 cases linked to hit-and-run incidents and 1,110 cases relating to foreign drivers.
MIBI chief executive John Casey claims the latest figures, which represent a reduction of almost 1,000 cases on the total for 2002, is a result of increased road safety measures, including the introduction of the penalty points system.
Before the introduction of the new safeguards, there was no time limit on when claimants had to notify the bureau of an accident.
"We often got people reporting accidents which had taken places several years earlier which were almost impossible to investigate thoroughly," said Mr Casey. "We believe a two-day reporting requirement will provide assurances to our genuine claimants that their claims will be processed in a timely fashion and will help to eliminate spurious and fraudulent claims."
Other changes include the requirement for claimants to make themselves available for an interview with investigators and to answer all reasonable questions. Mr Casey said statistics had consistently suggested that 5-7% of all drivers are not properly insured.
He encouraged motorists who had not taken out insurance because they felt they would be unable to afford their premium to contact insurance companies and brokers.
"There is a lot of competition between insurance companies and premiums are coming down, so people should be able to find affordable coverage," said Mr Casey.
