New Insurance database of fraudulent insurance claims

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New Insurance database of fraudulent insurance claims

The government is compiling a new Insurance database of fraudulent insurance claims is on the way to tackle rocketing costs of premiums.

The Cabinet has proposed that a national record of uninsured drivers be established as soon as possible after consideration of a report by junior minister Eoghan Murphy.

Judges will have the responsibility to update the book of quantum, which is the guide for how much is paid out for personal injuries claims.

The new database will comprise a fraudulent, or a “swindler’s ‘ list” in an attempt to crack down on exaggerated and false claims.

There is a huge need for something to be done about the rapidly rising insurance costs which have been increased by as much as 50 per cent since 2011. The government has set out 71 actions to be implemented in order to bring down insurance costs.

There has also been a proposal for the establishment of a specially dedicated Garda unit to probe insurance fraud. This unit may also be funded by insurers.

A commission is to be set up to look at personal injury awards in Ireland. Compared to other countries around the world, Ireland has massive personal injury payouts.


Seán Sherlock, a Labour TD and member of the Finance Committee which has investigated insurance costs in Ireland said there are still too many questions to be answered on motor insurance costs.

Questions to be answered:

“If there is a lack of transparency on claims, how is a national claims information database located in the Central Bank going to work, if the big players in the insurance market decide that they don’t want to co-operate?”

“There is a recommendation to create a database but what are the punitive actions on insurance companies if they do not co-operate with the creation of this database or decide to challenge the legislation establishing this database?”.

“If Insurance Ireland haven’t fully communicated the reason for large increases in premiums to consumers to date, then why would they do so now through this process?

“This is a kick to touch by the government, where the actions are put on the long finger to the end of 2017 and into 2018.

“Will the legislation compel the insurance sector to provide key metrics and data that will shed light on the true costs of car insurance?

“Any person that has incurred an increase in the cost of their car insurance premium, will take little or no comfort from the Working Group Recommendation.

“There is no radical attempt to establish the database before 2018, during which people will see a big cost in their insurance premiums.”


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IAEA Engineer