Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I will respond first to Deputy McGrath's questions and work backwards. Many business owners have informed me of claims being made against their businesses 18 months after the event. This practice is common in the hospitality sector, for example, in respect of nightclubs. A business is not able to defend itself in cases where no report of an incident of any nature has been made to a staff member. I will tie this in with Deputy Doherty's point about why a fraudulent claimant would delay proceedings. The best ploy available to a fraudulent claimant is to make a late claim because there may no evidence of an incident on the part of the business owner and, subsequently, to drag out the case for between three and five years. This potentially leaves an open claim on a business's books for that entire period. Business owners have frequently told me it is cheaper to pay off a claimant, even though they have no knowledge of any incident having taken place because as long as there is an open claim on their books, their insurance premium will increase.