Niamh Smyth (Cavan-Monaghan, Fianna Fail) | Oireachtas source

I thank Deputy Kelleher for introducing this highly practical Bill tonight. The country has been crying out for such legislation.

Fianna Fáil is bringing forward the Civil Liability and Courts (Amendment) Bill 2018 to the Dáil under Private Members' time to clamp down on false and fraudulent insurance claims that are happening on a daily basis. The purpose of our Bill is to amend section 26 of the Civil Liability and Courts Act 2004 and to provide that a court that dismisses a case on the basis that it is a fraudulent action must refer the matter to the DPP.

Fianna Fáil has long called for reform of the insurance market. In 2016, the Dáil passed a Fianna Fáil motion calling on the Government to reform the insurance market, to make it more transparent and ultimately to reduce premiums. Motor insurance customers, businesses, charities, sports clubs and many more people continue to face insurance premiums that are far in excess of what is justified or fair. According to the Central Statistics Office, CSO, while premiums have reduced by 11% in 2017, since the start of 2012 premiums have increased by 31%. The Government’s response to rising insurance costs has been appalling. After nearly two years of raising this issue we have yet to see any tangible responses from the Government.

The Bill is a concrete proposal for combatting the excessive costs of insurance for businesses and customers nationwide. When seeking to lower these costs, we must take into account the issue of fraud. While we acknowledge the right of genuine claimants to fair compensation, false and misleading claims have negative consequences for Irish policyholders and further drive up the cost of insurance premiums across the nation.

The working group on insurance costs this year concluded that the major issue in the personal injuries area is the lack of investigation and prosecution for fraud where it occurs. While the working group reported earlier this year that section 26 - the section specifically tasked with dealing with fraud under the Civil Liability and Courts Act 2004 - is not working effectively, no specific action has been taken by the Government to address this. The Government has yet to establish a national claims information database, has yet to tackle insurance fraud and has yet to take any action on stabilising personal injury claims. The Government has not handled these issues well and I urge the Minister to take on board the measures proposed in the Bill.

While the industry needs to be heard, so too do the countless customers who have been ripped off as their insurance premiums go through the roof. The Bill aims to remedy these issues by amending the provisions of section 26 to allow that where the court has exercised its investigatory function and if it has determined there is sufficient evidence for striking out the claim on the grounds of fraud, there would be an opportunity for the DPP to take it up. The Bill is another front in the battle against the excessive costs of insurance premiums and we look forward to getting cross-party support for it.

Needless to say we have all had experience of this, as my colleagues have alluded to. Business people come to our constituency offices who are crippled with insurance costs and claims. It is bizarre that insurance companies do not liaise, consult or discuss with their policyholders when they decide to pay out on a claim. When somebody makes a claim and the insurance company takes it upon itself to make a payment, the policyholders have no inkling that is happening until after the event and, of course, they pay the ultimate price when their insurance premium goes through the roof. They should be compelled to discuss any claims or settlement with their policyholder before a settlement can be made.

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