Written answers

Tuesday, 6 November 2018

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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200. To ask the Minister for Finance if he will address a matter (details supplied) regarding bogus insurance claims; and if he will make a statement on the matter. [45404/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the Cost of Insurance Working Group’s Reports on the Cost of Motor Insurance and the Cost of Employer and Public Liability Insurance both include measures to tackle fraudulent claims.

The Working Group has reported on the progress of implementing its recommendations each quarter since Q1 2017 in respect of the Motor Report and Q1 2018 in respect of the Employer and Public Liability Report. Each of the six updates produced thus far are available on the Department of Finance’s website, with the seventh report due to be published shortly.

Both of the Working Group’s Reports contain measures targeted at reducing fraud, most of which relate to the Department of Justice and Equality. In the Motor Report, Recommendation 25 called for the establishment of a fully functioning integrated insurance fraud database for industry to detect patterns of fraud, while Recommendation 26 supported exploring the potential for further cooperation between the insurance sector and An Garda Síochána in relation to insurance fraud investigation.

The implementation of Recommendation 25 has been impacted by the application of the General Data Protection Regulation (GDPR) which came into effect from 25 May 2018, and the related Data Protection Act. As a result, Insurance Ireland has undertaken a detailed Data Protection Impact Assessment (DPIA) in relation to matters such as the information currently held on Insurance Link and the specific additional data it is proposed will be shared, plus the additional circumstances under which the data will be shared. The Department of Justice and Equality are currently reviewing that DPIA.

In relation to the establishment of a dedicated Garda insurance fraud unit, Insurance Ireland communicated the outcome of its cost/benefit analysis at the start of July 2018, recommending industry funding of such a unit. Discussions are continuing between relevant officials in the Department of Justice and Equality and An Garda Síochána in this regard. In addition, I understand that the Minister for Justice and Equality met with senior Garda management on 30 August to discuss the proposal. The Minister will receive a proposal from the Garda Commissioner following the Commissioner’s consideration of this recommendation.

In the Report on the Cost of Employer and Public Liability Insurance, Recommendation 13 called for the agreement of a new set of guidelines in respect of the reporting of alleged insurance fraud. The agreed Guidelines for the Reporting of Suspected Fraudulent Insurance Claims by Insurance Entities to An Garda Síochána was released on 1 October. These Guidelines are publically available on the Garda website and a copy has also been sent to relevant bodies who had been involved in the consultation process such as the Self-Insured Taskforce, Irish Public Bodies, Lloyd’s and the State Claims Agency, as well as the Car Rental Council of Ireland. I believe that the Guidelines will assist and provide support to these organisations, as well as insurance companies, when reporting suspected insurance fraud to An Garda Síochána.

A ‘spin-off’ occurrence from the implementation of this recommendation has been a commitment for the Garda National Economic Crime Bureau and Insurance Ireland’s Anti-Fraud Forum to meet on a regular basis in order to discuss and act upon current and ongoing general issues which arise in the area of insurance fraud. This positive development is an opportunity for greater communication and improved processes and it is hoped that it will lead to a better understanding on both sides of the issues arising in the investigation and reporting of fraud.

Other recommendations in the Report on the Cost of Employer and Public Liability Insurance seek the production of reliable statistics in respect of the numbers of complaints, investigations, prosecutions and convictions related to insurance claim fraud, improved notification procedures for potential defendants of personal injury claims submitted against their policy, and stricter enforcement of the requirement for plaintiffs to lodge verifying affidavits within the set timeframe.

Overall, it is intended that the implementation of all the recommendations from the two Reports cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, can lead to both reduced incentives for, and greater deterrents against, the undertaking of fraudulent insurance-related activities.

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