David Stanton (Cork East, Fine Gael) | Oireachtas source

On behalf of the Minister for Justice and Equality, Deputy Flanagan, I thank Deputy Kelleher for the further responses he has provided on this proposed Bill. I also thank those Members who have participated in enriching our debate on Second Stage. As the Minister stated, there is a common objective shared by Deputy Kelleher's Bill and the Government's initiative of establishing the cost of insurance working group and its round-table on fraud to reform the insurance sector. I also acknowledge the various concerns expressed by Deputies about the high cost of insurance in this jurisdiction and the adverse impacts of such high insurance costs on private citizens and enterprise. I have had discussions with businesses and concerned citizens about this. The Government is taking this matter seriously, as are all Members who spoke tonight.

Every effort is being made to address these issues and what is colloquially described as the claims culture that drives it. As has been outlined, the Department of Justice and Equality is doing its part in addressing these matters under 17 of the 48 recommendations made in the reports of the cost of insurance working group. These reports cover in their scope motor insurance, personal liability insurance and employer insurance as areas which give rise to particular concern. Along with the Minister for Finance and the Minister of State, Deputy D'Arcy, who chairs the working group, all members of the Government are determined that real headway now be made in addressing these matters with lasting effect.

The reform measures recommended by the cost of insurance working group extend beyond those which fall under the remit of the Department of Justice and Equality or Deputy's Kelleher's proposed amendment. For example, the Central Bank (National Claims Information Database) Bill 2018, introduced by the Minister for Finance, passed Second Stage on 20 September 2018. This is a product of the work of the cost of insurance working group where it emerged that it was essential that there be an improvement in transparency around what was causing premiums to be so volatile, both up and down, over relatively short periods. The group, therefore, recommended the establishment of a national claims information database on a legislative basis to facilitate a more in-depth analysis of annual claims trends of motor insurance claims. This will be key to developing an understanding of how claims costs are impacting premiums, in particular understanding the relationship between the price paid by a customer for motor insurance and the cost to insurance undertakings.

A key component of these overall reform efforts is the need to tackle insurance fraud. This includes giving renewed focus and effective follow-up in the courts to the provisions of sections 25 and 26 of the Civil Liability and Court Act 2004, which lies at the root of Deputy Kelleher's Bill. It is fair to say that we are on the same road in this regard.

To bring these initiatives to their shared destination, we just need to adjust some of the signposts along the way.

Given the broad range of challenges being faced, section 26 of the 2004 Act will not solve all our problems on its own; even if amended, it can only give rise to a limited number of outcomes in terms of alleged insurance fraud. In making these remarks I would therefore draw renewed attention to the fact that in its report on the cost of employer and public liability insurance, the working group expressed the belief that "in order for section 26 to achieve more effectively its aim of tackling personal injury fraud, there is a major onus on defendants to challenge misleading evidence, where appropriate by taking it to court, rather than settling on the court steps for fear of an unsatisfactory outcome”. As mentioned by the Minister, Deputy Flanagan, the working group was also of the view "that appropriate use of the legislative provisions in the 2004 Act could be facilitated by encouraging industry to make complaints to An Garda Síochána where they believe fraud to have featured in claims". Yesterday's publication of the new guidelines for the reporting of allegations of fraudulent insurance claims to An Garda Síochána, which have been agreed between the Garda National Economic Crime Bureau and Insurance Ireland, is, I believe Members will agree, a good example of the kind of encouraging measures that we need in this regard.

These concerted reform initiatives represent a series of mutually reinforcing measures that, in their collective implementation, will strengthen sections 25 and 26 of the Civil Liability and Courts Act. I look forward with the Minister, Deputy Flanagan, to our ongoing consideration of Deputy Kelleher's amendment Bill, including the substantial amendments to the Bill that will be required and which I expect will be proposed by the Government on Committee Stage. As the Minister said earlier, we are not opposing this proposed legislation.

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