The Number of Bogus Insurance Claims Being Investigated Has Doubled

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Fraudulent claims that have been investigated by the insurance industry more than doubled in 2009, with the first quarter of 2010 already showing a new rise in the number of cases being probed.

There have been 165 new cases already exposed up to the end of March 2010, a far higher figure than that for the same period last year.

Of the new cases being investigated by the Insurance Industry Federation (IIF), motor injury claims accounted for 42 per cent of claims, with 17 per cent linked to motor damage. Property claims made up 25.5 per cent of the cases, with employers' liability and public liability cover accounting for 14.5 per cent. The remaining one per cent of cases was linked to claims such as life insurance and travel insurance.

Figures published by the Insurance Industry Federation revealed that its Insurance Confidential Hotline had received information relating to 686 new cases in 2009, compared to just 308 cases in 2008.

These numbers reflected the number of cases being investigated only, with the number of calls to the hotline being a multiple of the figure. The IIF said the surging trend had continued in the first quarter of 2010 too.

One such case investigated by the IIF in 2009, involved a staged burglary, which saw two separate claims made for two robberies in the same geographical area totalling €103,000.

On further investigation, it was discovered that the claimants were both good friends who had carried out bogus burglaries at each other's homes.

The claimants were asked to pay €12,000 to the court following prosecution, with the money distributed to local charities within the area.

A fear of a large number of bogus claims being made has had an affect on the Insurance Industry Federations advertising campaign during the past two years. A spokesperson said, "The IIF continued with an anti-fraud advertising effort in 2009 as insurers were aware of the likelihood of an increase in fraudulent and exaggerated claims as the recession took hold. The advertising is used to deter people from engaging in fraudulent activities, as well as highlighting the IIF's confidential hotline."

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