Dedicated garda fraud unit needed to tackle insurance scams, says Vintners Federation of Ireland

A dedicated Garda fraud unit is urgently needed to tackle insurance scams, according to the Vintners Federation of Ireland.

"There will be no disincentive until some person feels the full rigours of the law and is denied their freedom in the same way as they are trying to deny businesses the right to survive by these scandalous escapades, said chief executive of the VFI, Pádraig Cribbeen.

Mr Cribbeen said the recent incident in a pub in Newbridge, Co Kildare shows the extent of the threat facing small businesses as they battle soaring insurance premiums and massive compensation claims.

The pub claims that CCTV footage shows a customer putting glass in her mouth and claiming it had been in her food and made her choke.

“The 'compo culture' certainly exists and they are both being fed by the same issue – extraordinary high award levels in Ireland."

The Alliance for Insurance Reform echoes that view. Its director, Peter Boland, said rising insurance costs threaten many sectors.

He said that fraudulent claims, along with huge court payouts for even minor injuries pose an existential threat to tourism, the hospitality industry as well as to voluntary sports and other organisations.

This type of incident is happening on a daily basis and many of our members feel besieged by it. Not only small businesses but voluntary organisations, adventure centres, children's play centres, Tidy Towns committees and sports groups are all affected.

Mr Boland said his organisation was looking for the Government to fund a proper Garda response to the crisis.

"The legislaiton is there, the awareness is there but if the gardaí don't have the resources to tackle this scourge nothing will change," he said.