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Forty
per cent (40 %) Increase in Fraud Cases in first week of Anti-Fraud
Campaign Irish Insurance Federation Press Release
__________________________________
21st
October 2008
Irish
Insurance Federation (IIF) recently re-launched their ongoing
anti-fraud campaign and have received a surge in calls from
the public in the first week of the campaign.
Insurance
Confidential, the hotline run by IIF has received 3610 calls
in the last five years since it was established and is calling
on the public to continue to report suspect claims. "When
we run the anti-fraud campaigns, we get a surge in calls from
the public. In the first week of the campaign we saw a forty
percent increase in cases reported which indicates that there
is still widespread concern among consumers," said Mike Kemp,
Chief Executive, IIF. "People are more aware than ever that
insurance fraud means their wallet gets hit and reporting
suspect claims is one way of preventing that".
A
statistical breakdown of costs showed that the majority of
cases related to motor injury, with 1752 reports made which
accounted for almost fifty per cent of the total.
The
highest rate of reporting fraudulent claims come from Dublin
where 950 cases were reported. Another 948 reported from the
rest of Leinster and 809 from Munster. Cases from Connacht
accounted for 386, followed by Ulster with 131.
Some
of the fraudulent cases that have been exposed in recent months
include exaggerated injuries, policyholders holding multiple
policies insuring the same items, and staged burglaries.
The
campaign was launched earlier this month and consists of an
outdoor poster campaign, radio and press advertising focusing
on the criminal aspect of fraud. Some typical fraudulent activities
that have been identified through Insurance Confidential or
otherwise are outlined below
CASE
STUDIES
1.
False Report - A husband and wife team were handed down suspended
prison sentences earlier this year. They attempted to defraud
an insurance company of 250,000 by falsely pretending the
husband was driving a car that was involved in an accident
resulting in damage to the car and injuries to his wife. Upon
Garda investigation it was found that the wife, who claimed
to be the passenger, was in fact driving the car at the time
of the accident.
2.
Exaggerated Injuries - A claim to the value of 80,000 was
lodged following a single vehicle accident. The claimant was
a passenger in a friend's car. When this case was investigated
it was found that although the claimant did suffer injuries,
some of the injuries they were claiming for were in fact sustained
in a separate subsequent accident seven months after the incident
occurred. The claimant was exposed and the judge dismissed
the claim in its entirety. This was the first time Section
26 of the Civil Liability and Courts Act 2004 was implemented
meaning that the claim failed even though some of it was genuine.
3.
Staged Burglary - Two separate claims for burglaries in the
same geographic area amounted to 103,000. Upon examination
of it was noted that both claims were very similar. When further
investigated it was uncovered that both claimants were good
friends and it was proven that together they had staged their
own burglaries. One of these cases has concluded and was successfully
prosecuted. The claimant was made pay 12,000 to the court,
which was distributed between charities in the local area.
(The second case is ongoing.)
4.
Non Disclosure - Three claims were made in a three-month period
following the inception of a policy. Upon investigation it
was found that the insured had numerous previous convictions
and outstanding charges, including road traffic offences which
were not disclosed. It was also found the incident circumstances
as described by the insured did not tally. The claim was rejected
and a saving of 45,000 was made.
5.
Fake Invoice - A claim for a burglary that presented for 11,000
worth of contents was made. When the claim was investigated
it was established that the invoice the claimant produced
was false, the insured subsequently admitted this. This case
has been referred to the Fraud Squad.
Notes
about this Press Release:
The
Irish Insurance Federation (IIF) is the representative body
for insurance companies in Ireland representing 63 member
companies, which collectively:
write over 95% of Irish insurance business (over 17 billion
in premiums);
are responsible for the investment of over 90 billion in
life policyholder assets and non-life claims reserves; and
employ over 14,000 people.
Source
Irish Insurance Federation
More
Information at IIF
Website
See
also:
Irish
Insurance Federation (IIF)
Insurance
rates at 25-year low but reform benefits fully absorbed -
Irish Insurance Federation - May 2008
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