Fiona O'Loughlin (Kildare South, Fianna Fail) | Oireachtas source

I am sharing time with my colleagues. As we know, this Bill seeks to reduce the number of fraudulent insurance claims by ensuring that false claims are dealt with under the law, and rightly so. I commend my colleague, Deputy Kelleher, on bringing this forward. Fraudulent insurance claims are costing each and every consumer hundred of euro. It adds to the costs of businesses, car owners, house owners, and sports and community buildings. They are all impacted. One of the most effective and visual advertisements that I have ever seen on our screens is that particular advertisement that shows people taking money out of our pockets. That is absolutely what fraudulent insurance claims are doing and that is why insurance premiums are continuing to rise. It is absolutely down to fraudulent claims.

We know from the CSO that since the start of 2012 premiums have increased by 31%. It was even higher, but last year there was a slight reduction. Unfortunately we do not by how much business insurance has increased because no index is kept. That is also wrong because we need to be able to measure these things in order to be able to help and support businesses when they are in crisis. This is one of the things that puts them into crisis. We simply must make would-be fraudsters think twice about making false claims. We absolutely must clamp down on false insurance claims because they are driving up the premiums for everyone else and adding to the rising cost of living.

Currently, even when false claims are identified, legal action against them most often does not ensure. This absolutely needs to be dealt with. That is why Deputy Kelleher drafted this Bill. If passed, this Bill will ensure that those who engage in this criminal activity - and let us not for a second think it is anything else - will be referred to the Director of Public Prosecutions. We need to make it absolutely clear to would-be false claimants that if their claim is determined to be false they will face consequences. Anyone who suffers injury or harm resulting from an accident is, of course, deserving of fair compensation. We absolutely acknowledge the right of genuine claimants to fair compensation. However, many criminals are making false claims for compensation and, very unfortunately, insurers in Ireland have a habit of paying out compensation without appropriate investigations and without any consultation with those who are paying their insurance premiums. In many cases, the person who has had a claim made against him or her only finds out when his or her premium rises the following year.

There is no doubt that false and misleading claims have very many negative consequences for Irish policyholders and further drive up the cost of insurance premiums. We absolutely need to make sure that we stop that and show the decent people of this country that we are on their side and are doing our best to stop these fraudulent claims.

Fianna Fáil has long called for reform of the insurance market. In June 2016, a Dáil motion was successfully passed by our party calling on the Government to reform the market, make it more transparent and reduce the cost of premiums. However, the Government's response to rising insurance costs for individuals, businesses, sporting clubs and charities has been appalling. After two years of raising this issue, we have yet to see any tangible responses from the Government. The Government has yet to establish a national claims information database, tackle insurance fraud, establish an anti-fraud unit in An Garda Síochána, establish an index to track business insurance premiums and take any action on stabilising personal injury claims.

This is another front in the battle against the excessive costs of insurance premiums. We look forward to getting cross-party support for this Bill on Second Stage. I commend it to the House.

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