Hotline bid to crack down on insurance fraudsters

THE public will be recruited this week to help track down insurance fraudsters who are set to cost policy holders at least €100m this year.

An anti-fraudster hotline will be launched by the Irish Insurance Federation (IIF ) on Thursday aimed at cutting out fraud and drastically reducing premiums for the consumer.

Tanaiste Mary Harney, who has direct responsibility for the insurance industry, will launch the IIF hotline and anti-fraud publicity campaign.

While the insurance industry has beefed up its investigating teams by hiring former Garda Fraud Squad members, the public’s help is vital for wiping out fraud, IIF chief executive Michael Kemp said: “No group working alone can eliminate the cost of fraud - insurers, gardai and law-abiding public cannot solve it alone, we need to work together.”

The IIF estimates that fraudulent and spurious claims will cost insurers at least €100 million this year but policy holders pick up the tab in increased premiums. Insurance company investigators have found the most common forms of fraud are:

*False declarations or failing to disclose information to get insurance cover.

*Taking out policies to cover the same risk to make multiple claims.

*Inflating the value of items or getting cover for items that do not exist.

*Staging accidents to make a claim and inflating a claim following a genuine accident.

The IIF wants tougher laws to clampdown on fraudsters, highlighted in a report by the Motor Insurance Advisory Board last year.

The Tanaiste’s spokesman said the Government had agreed that the board’s report should be implemented and the Minister for Justice has indicated he will introduce legislation.