27 Jan 2019
Posted by Barry Aldworth 
AA Ireland has warned government of the dangers of failing to tackle the issue of rising court compensation awards, after a recent survey found 1 in 8 motorists believe an exaggerated personal injury claim has previously been made against them.
According to a recent AA Car Insurance survey of over 5,000 motorists, 8% of respondents stated that they strongly
suspect that a fraudulent or exaggerated personal injury claim has been made against them in the past. Meanwhile, a further 3% of those surveyed described themselves as ‘somewhat suspicious’ that they had fallen victim to a fraudulent injury claim.
According to estimates from Insurance Ireland, insurance fraud and exaggerated personal injury claims add approximately €50 to the average car insurance policy in Ireland.
“Firstly, we do need to acknowledge that there is a difference between suspecting that a claim made against you is fraudulent or exaggerated and knowing this to be the case. However, with that said, the issue of people pursuing questionable claims through the courts in the hopes of a generous injury settlement has been a long-standing one and one which directly affects the insurance premiums for all motorists,” Conor Faughnan, AA Director of Consumer Affairs stated.
1 in 5 Believe They Know A Fraudulent Claimant
The survey also found that over a fifth of motorists know at least one person who has made a fraudulent injury claim in the past.
When asked if they were aware of anyone who had pursued a fraudulent or question injury claim, 21% of respondents indicated that they ‘strongly believed’ they knew of at least one such incident. Meanwhile, a further 14% of respondents stated that they ‘somewhat believed’ a person known to them had submitted a questionable claim in the past.
“Those who suffer an injury are of course entitled to seek compensation, but we need to increase the number of these cases which are dealt with directly by the Personal Injuries Assessment Board instead of the courts, also provide PIAB with the resources necessary to investigate questionable claims and bring compensation awards in Ireland in line with international norms,” Faughnan added. “These actions were identified in the Government’s Cost of Insurance Working Group report but unfortunately in the two years since the report was first published we haven’t seen enough forward progress. While Brexit has rightly taken centre stage for Government currently, this issue can’t simply be put on the back-burner and ignored for a further two years.”
