The Motor Insurers Bureau of Ireland (MIBI) is to launch a clampdown on fraudulent insurance claims by reporting such suspicions to the Gardaí. The Bureau believes that as many as 1 in 8 claims are suspicious with evidence presented failing to fully support the claims made.

The MIBI has recently published a Fighting Fraud report in which it also points out that proving an allegation of fraud is very difficult in the current Irish legal framework. In theory engaging in such activity could lead to a 10 years prison sentence or €100,000 fine, but prosecutions are very rare.

The Motor Insurers’ Bureau of Ireland has outlined its determination to stamp out motor insurance claims fraud by implementing a range of commitments which aim to substantially reduce the success of false claims. This will include a comprehensive evaluation for every claim received and flagging any which have inconsistencies. These will be thoroughly investigated using internal and external investigative resources and scientific analysis. The MIBI also says it will work closely with An Gardaí Síochána around all relevant cases and ask them to investigate malicious claims without merit. In cases where the evidence does not support a claim being made the MIBI will legally contest these claims including via the courts system.

Since the beginning of the year the MIBI has generated over €1.8 million in fraud savings while a further 158 new cases have been flagged as suspicious and are being thoroughly investigated.

The MIBI is a not for profit company that was established to compensate victims of road traffic accidents caused by uninsured and unidentified vehicles.  Every year they make annual payments in the region of €55 - €60 million, receiving thousands of insurance claims.  2,922 claims were received by the MIBI in 2016.  The average cost per uninsured claim over the last five years was €54,364. 

Speaking about the report, David Fitzgerald, Chief Executive of the MIBI said, “Insurance fraud can’t be tolerated.  It is a scourge on Irish roads.  It not only adds to the cost of insurance premiums, we also estimate that hundreds of injuries are sustained every year because of claims fraud related activity.” He added, "We are also committed to working with the Gardaí and the other State authorities on these issues.  Where the evidence shows a malicious claim without merit has been made, we will be asking them to investigate with a view to beginning criminal proceedings against the claimant involved. Essentially we have adopted a zero tolerance approach to claims that are not real.  We believe these steps are necessary as the claims culture is continuing to thrive.”