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You are > Home > 232 bogus insurance claims in Connacht in last two years
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Wednesday, March 23, 2005
232 bogus insurance claims in Connacht in last two years
A total of 232 cases of suspected insurance fraud within Connacht have been reported to the Irish Insurance Federation (IIF) in the last two years, a figure which stands at 11% of all reports across the country. Although this figure may seem like a like a very small percentage when it is looked at on a national scale, the sheer volume of complaints certainly highlights the general public’s discontent with those who are in the practice of lodging false insurance claims.
Between February 20 2003 and February 20 this year, 2,139 instances of suspected insurance fraud were registered with the Insurance Confidential Hotline nationwide, grouped under a number of headings based on various types of insurance.
In Connacht, 29 reports were made about Employers who had claimed falsely through their insurance. 36 cases were reported following Public Liability claims, 22 Motor Damage cases were questioned, while a staggering 124 Motor Injury claims were brought to the attention of the IIF.
In addition, 11 suspect Household insurance claims were reported and seven Non-Household Property claims were brought to light. A total of three suspected false insurance claims were also reported in relation to Other Motor claims (claims that did not fall under the headings of Motor Damage or Motor Injury). There were no suspected false claims in Connacht made in relation to Travel insurance or Personal Accident insurance.
These reports come as a result of a campaign, launched two years ago by the IIF in an effort to address the growing problem of fraudulent claims, which cost the industry an estimated €100million per annum. According to the IIF, the high response rate to date clearly indicates that the public are fed up with the insurance fraudsters.
“Insurers are no longer a soft touch when it comes to false and exaggerated claims. They now use numerous methods to catch the fraudsters out,” said Michael Kemp, Chief Executive of the IIF.
Continuing, he explained that apart from beefing up their claims, having special investigation departments to review all claims and making greater use of private investigation firms to undertake surveillance work to assist them mount successful defences, insurers are also actively referring cases of suspected fraud to the Gardaí for criminal investigation.
Mr Kemp could also confirm that there are currently over 100 cases of suspected insurance fraud, which have been handed over to the Garda Bureau of Fraud Investigations (GBFI) are being investigated by An Garda Síochána.
“There is no doubt that the new anti-fraud provisions contained in the Civil Liability and Courts Act, which applies to any offence which took place since the end of September 2004, are an extra weapon which insurers will be using in the fight against fraud. The Act provides for a penalty of up to €100,000 and/or up to 10 years in prison for anyone who is found guilty of insurance fraud,” commented Mr Kemp.
Naturally, a huge amount of claims are made each year by people all over Ireland and as a result many conclude that insurance companies couldn’t possibly check out each and every claim. That’s where the IIF come in handy. The IIF is the representative body for insurance companies in Ireland representing 54 member companies, which employ over 15,000 people. The phone number for Insurance Confidential is lo-call 1890 333 333.
Lies and more lies: tales of insurance fraud
• A motorist stated that she crashed her comprehensively insured vehicle, whilst driving home from a Christmas party. The car was totally destroyed in the accident, resulting in a substantial insurance claim. Information was received via the hotline Insurance Confidential, indicating that the insured was not driving or even present at the time of the accident. It was alleged that the insured’s son was driving the vehicle. After a swift investigation by the insurance company, the insured admitted that she was not driving the vehicle at the time of the accident. A file has been forwarded to the Garda Bureau of Fraud Investigation (GBFI).
• A third party involved in a serious road traffic accident, stated that they were unable to return to work or to participate in sporting activities as a result of the accident. The insurance company decided to act on some information received from Insurance Confidential and undertook discreet surveillance on the claimant. Intelligence was gained of the claimant working abroad and partaking in various physical sports. The insurance company is currently awaiting a court date for the case to be heard.
• A claim for a substantial amount was made to an insurer in respect of fire damage to an agricultural machine. The insurer paid the claim. Some time later, information was received anonymously, which indicated that a false claim had been made. The insurance company investigated the matter and discovered that the fire damage to the agricultural machine had occurred shortly prior to it being insured. The insurer is in the process of trying to recover the monies paid. In addition, the matter has been referred to An Garda Síochána for criminal investigation.
• A car was damaged as a result of an accident. A garage submitted an invoice to the car owner’s insurance company for a towage fee of €300 for bringing the car from the scene of the accident to the garage. However, it was subsequently discovered that the owner of the car had driven the car to the garage with no assistance from the garage. The insurance company has referred the matter to An Garda Síochána for criminal investigation.
• With the co-operation of a shop assistant in an electrical retail store, a householder created invoices for goods by replacing the original name of another customer on an invoice with their own name. The householder also obtained instruction manuals for the relevant electrical goods. The householder subsequently submitted a claim for the loss of the goods on their household property insurance, stating that a burglary had taken place.
The forged invoice and instruction manuals were presented to the insurance company in support of the claim. The insurance company investigated the matter and further action is pending
• An individual made a claim for €170,000 for personal injury following an alleged accident. As part of his claimant stated that he could no longer play any sports as a consequence of the accident. However, on the basis of information received from the Insurance Confidential hotline, the insurance company investigated the matter further and gathered evidence of the claimant playing football. The insurance company defended the claim and the claimant withdrew his case.
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