Younger drivers see no problem in lying to insurers
A survey has found the majority of motorists under 29 think giving untruthful details about their profession or their average mileage is not fraud, or is only mild fraud, while 31% of young drivers had the same attitude when it came to being untruthful about the primary driver of their car.
The survey was conducted by Red C for Liberty Insurance which yesterday hosted an event for people in the motor insurance industry on the theme of motor insurance reform.
It focused on tackling fraud in Ireland which, according to the insurance industry, is a significant contributor to the increase in insurance premiums.
Among the speakers at yesterday’s event in Dublin was Ben Fletcher, director of the UK’s Insurance Fraud Bureau, who spoke about the prevalence of motor insurance fraud orchestrated by criminal gangs.
“We found a significant organised element to insurance fraud,” he said.
Speaking later to Sean O’Rourke on RTÉ radio, he said: “The IFB in the last 10 years has had 1,200 people arrested, with 500 people convicted and over 500 years in custodial sentences handed down.”
The cost of car insurance can only be brought under control if fraud is tackled and data is shared more effectively, according to Liberty. The company’s director of personal lines, Deirdre Ashe, said Liberty was highly committed and engaged with the Government’s cost of insurance working group, and the 88 actions that group is pursuing to bring about reform.
She said Liberty was keen to facilitate further on those actions and was shining a light on two aspects of the problem — fraud and increased data sharing.
She said the company was looking for more rigid enforcement of existing legislation on the prosecution of insurance fraud and is seeking a dedicated Garda insurance fraud unit.
Liberty is also suggesting enhanced training for judges to ensure greater consistency in the level of personal injuries compensation awarded.
Ms Ashe said this is something other countries have applied and it would have merits here. She said fraud in the industry is costing €200m a year, putting a minimum of €50 extra on insurance policies.
Liberty Insurance chief Sharon O’Brien said: “Liberty is 100% committed to reform of Ireland’s motor insurance industry. We recognise the significant pain that customers have felt over the last number of years. We have played a key role in the work of the cost of insurance working group and will continue to do so.
“Important progress has been made. However, we believe that a concentrated focus in the areas of fraud and data sharing in particular is needed to drive further successful reform and ultimately drive down costs for motorists.
“Fraud is a key driver of increased insurance costs and it needs to be tackled head-on, in the interests of our customers.”
