Michael Collins (Cork South West, Independent) | Oireachtas source

I am grateful to have the opportunity to contribute to the debate, as it will have an effect on lowering the price of insurance, which I fully support. The purpose of the Bill is that in the future, when a court has dismissed a case on the basis of it being a fraudulent action, it is automatically referred to the DPP. I welcome this change because, currently, our system allows people to get away with fraudulent cases in the courts. If an insurance claim is taken to court and the evidence presented shows it to be fraudulent, it is often the case that no action is taken against the claimant. Our insurance companies tell us that to factor in fraudulent claims, a cost is built into insurance premiums. We are too well aware of the crippling insurance costs being experienced by anyone who has car, home, farm or business insurance. The list is endless because the bottom line is that right across the board, insurance costs have risen to an all-time high and it is clear that these increased premiums are because of insurance companies having to factor in fraudulent claims.

I am inundated with representations from constituents who are distressed and upset because of the quotes they are getting for motor insurance. Why should the honest, everyday person have to suffer these high premiums because of the illegal activities of others? It is time we stood up and took action. I welcome this Bill as it is a step in the right direction. I support any individuals and business owners who go about their day-to-day lives and business lawfully. We have seen businesses suffer greatly with crippling insurance costs, with their public liability insurance increasing by as much as 70% in the past four years. An example of this is a wonderful business in my constituency that had to go public on this matter. I refer to the West Cork Secret gardens in Kilbrittain, an important amenity in west Cork. It is used by people far and wide and provides much needed employment in a rural area. It has found its insurance premium going from under €5,000 a year to more than €20,000, which is outrageous. How does the Minister or anyone else expect any business to cover an insurance hike as high as that?

The rising cost of insurance premiums is putting significant pressure on businesses and is not in any way helping any business to keep its doors open. It is clear that fraudulent insurance claims are having a negative impact on businesses and their owners. Can this Government put its hand on its heart and say it has considered the emotional and psychological impact of this on small business owners? I have met constituents who are business owners, such as garage owners, self-employed people, tradespeople, publicans, nightclub owners, hoteliers - the list goes on. These business owners can often be threatened by being taken to court by fraudsters, and what normally happens is that the insurance company settles out of court because fighting the claim in court is not worth the hassle.

This has to stop. Going forward, if an insurance claim is taken to court and the evidence presented shows it to be fraudulent, the Director of Public Prosecutions needs to prosecute these fraudsters. There is an opportunity here for the Garda and an insurance fraud squad to be employed to investigate these fraudsters. It is high time we stopped allowing these fraudulent claims to continue. I have not seen this Government make a meaningful effort to address this issue. Under the programme for Government there is an obligation on the Government to act on this issue, particularly given that the cost of insurance working group was established with that purpose in mind. I urge this Government to address this matter in a meaningful way. There should be no more pussyfooting around. It is time real action was taken. I commend Deputy Kelleher for tabling this motion.

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