Insurance fraud claims leap 40%
Insurance Confidential, the telephone hotline run by IIF, has received 3,610 calls since it was established five years ago.
Some of the fraudulent cases exposed in recent months included exaggerated injuries, policyholders holding multiple policies, insuring the same items and staged burglaries.
A series of advertisements highlighting the IIF’s anti-fraud campaign has resulted in a surge in calls.
IIF chief executive Mike Kemp said it showed there was still widespread concern about insurance fraud.
“People are now more aware than ever that insurance fraud means their wallet gets hit and reporting suspect claims is one way of preventing that,” he said.
A statistical breakdown of fraudulent cases reportedly shows that most relate to motor injury — 1,752 reports were made, accounting for 50% of the total.
Dublin had the highest rate of reported fraudulent claims, with 950 cases.
Another 948 reported claims came from the rest of Leinster and 809 from Munster. Connacht accounted for 386, with 131 in Ulster.
In one of the cases exposed by the IIF, a married couple received suspended prison sentences earlier this year after attempting to defraud an insurance company of €250,000. The husband claimed to be driver of a car involved in an accident in which his wife was injured. A Garda investigation found that the wife, who claimed to be a passenger, was driving the car at the time.
In another case, involving exaggerated injuries, an €80,000 claim was lodged following a single vehicle accident. The claimant, a passenger in a friend’s car, did suffer injuries but some injuries were sustained in a separate accident seven months later. The judge dismissed the case, though part of the claim was genuine.
Another case showed two friends who lived in the same area and lodged separate robbery claims amounting to €103,000 were found to have staged their own burglaries. One of the claimants, whose case was successfully prosecuted, was ordered to pay €12,000 to the court’s poor box and the second case is ongoing.
The IIF also revealed that three claims were made in a three-month period after a new insurance policy was taken out. It was found that the insured parties had numerous previous convictions. The claim was rejected, saving €45,000.
An investigation of an €11,000 burglary claim found that the invoice produced by the claimant was false. The case has been referred to the Fraud Squad.
* The IIF’s insurance fraud hotline is 1890 333 333.
