Insurance Fraud Hotline Receives 3,500 Tip-Offs
February 15, 2008
ALMOST 3,500 cases of alleged insurance fraud have been reported to the country’s main fraud hotline — half of which were related to bogus car crash injuries.
Figures from the Irish Insurance Federation regarding its fraud insurance hotline show that in the four years from 2003 to the end of last year, 3,447 cases were reported.
Of those, a staggering 1,691 cases — or 49% of the total — were related to claims of injuries from car accidents.
Thanks to one tip-off, the federation claims a saving of €2 million was made when someone involved in a car accident and claiming to have been permanently confined to a wheelchair withdrew his claim on the morning of a High Court action, after investigations found he was not disabled.
The second highest category of allegedly fraudulent insurance claims related to damage to cars, with 434 cases, or 12% of the total. A further 153 cases (4.4%) related to other motor cases, such as securing insurance with a false driving licence.
Cases involving employers’ liability and public liability accounted for 10% of the total.
However, the Irish Insurance Federation said it was not in a position to give details as to the number of cases in which a contact made to its hotline resulted in prosecution for fraud.
While last year’s tally of 272 new cases was the lowest annual tally since the hotline was established, the federation believes the existence of the phone line works as a deterrent. Examples include:
* A call to the hotline led to an investigation regarding a man who exaggerated the status of his injuries following an accident. While he received an award of €78,000, the federation claims the sum would have been closer to €500,000 without the tip-off.
* A case was dismissed after a witness to an alleged incident in which a man suffered serious back injuries was revealed as the sister of the claimant, but using her married name.
Source : examiner.ie
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