Move to seize uninsured cars
The minister also announced drivers convicted of careless driving from June 1 would be given 5 penalty points.
Gardaí are entitled to confiscate vehicles which they have not done so up to now because of a lack of storage space.
But that problem is now solved, and Justice Minister Michael McDowell has told gardaí to begin seizing uninsured cars.
Mr Brennan, who was speaking at the signing of a revised insurance agreement between the Government and the Motor Insurance Bureau of Ireland (MIBI), said the cost of premiums could be reduced by up to 7% if all vehicles were insured.
The agreement means that victims of uninsured drivers seeking compensation from the MIBI face a tighter claims procedure from next month when new safeguards against scams are introduced.
All motor insurers in Ireland fund the MIBI in proportion to their share of the motor insurance business.
In 2002, the MIBI received 3,650 claims and paid out almost €50 million in settlements for over 1,000 of the claims. The average settled claim cost was €47,000.
Around 60% of claims received no compensation from the bureau because the specific insurer was eventually identified.
The MIBI, however, is concerned the 3% of identified fraudulent claims may actually not reflect the likely figure which could amount to 10%.
The Irish Insurance Federation put the cost of all insurance fraud during 2002 at €100 million.
Chief executive of the MIBI, John Casey, said while the vast majority of claims made were genuine, the new plan would help identify spurious claims.
