Businesses back name and shame drive to cut public liability fraud
Irish businesses have called for an official register of fraudulent insurance claimants, saying they cannot afford the inexorable rise of public liability (PL) premiums.
Pat McDonagh, the founder and chief executive of Ireland's biggest indigenous fast food chain Supermac's, led the call, supported by the Chambers of Commerce of Ireland, the Irish Business and Employers Confederation, the Institute of Small and Medium Enterprises, the Small Firms Association (SFA) and public transport group Coras Iompar Eireann.
McDonagh said business groups, government bodies, the Garda, insurers and the courts needed to pool information on fraudulent claimants.
He also said the Garda must pursue fraudsters more vigorously.
McDonagh said his business was hit by a 400% increase in its PL premium in 2002, due to the influx of claims.
"We currently have 111 PL claims outstanding against our 46 Supermac's restaurants and estimate that up to 50% of these are exaggerated, with a further 25% believed to be false," he said.
McDonagh said managing increased premiums and claims had replaced recruitment and retention of staff as the most pressing challenge facing Irish businesses.
"Exorbitant insurance premiums are costing Irish jobs," he said.
SFA chief executive Pat Delaney said the use of CCTV had grown by 800% in a bid to stem fraudulent claims.
"Underwriters and brokers are insisting that companies that deal with the public and have exposure to spurious claims get CCTV," he said.
Delaney said the SFA had an unofficial fraud register that it encouraged businesses to use.
He said: "A supermarket searched a claimant on it and found the woman had 14 previous falls in supermarkets and was awarded money every time.
"She was an accident waiting to happen."
