Mattie McGrath: Blames Fraudulent Claims for Soaring Insurance Costs
Mattie McGrath spoke on 29 Jul 2020 about insurance fraud and rising insurance costs, supporting a private member's bill to curb false and exaggerated claims. He urged tougher sanctions on serial claimants and criticised regulators for being ineffective while insurance costs crush community groups and businesses.
Main argument
McGrath argued that fraudulent and exaggerated insurance claims are widespread and that the Bill is an important step to address the problem. He said false claims drive up premiums and make insurance unaffordable for individuals, voluntary organisations and businesses.
Impact on community groups and services
He highlighted that community halls, GA pits, soccer clubs, Meals on Wheels, CE schemes, mountain walking and kayaking groups, and playgrounds have been affected. McGrath gave a local example of a playground he knows that was closed after two fraudulent claims, leaving children without facilities.
Business and personal costs
McGrath described insurance costs as crippling for businesses and families, citing high car insurance and the burden on small enterprises. He said some businesses have ceased trading because of insurance costs and warned the COVID crisis will make the problem more acute.
Criticism of regulators and insurers
He criticised regulators as toothless and said powerful interests in the insurance industry have blocked stronger action. McGrath welcomed the minister's previous positive response and noted the issue appears in the programme for government, while expressing frustration that past reform efforts were stymied.
Evidence and enforcement concerns
He said settlements are sometimes made despite suspected fraud and that there are few sanctions for those who make false claims. McGrath called for tougher enforcement, citing televised appeals that urged the public to report suspected fraudulent claims and pointing to large payouts recorded by a county council as an example of the financial toll.
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I too want to rise tonight to support this very important piece of legislation and compliment the regional group for bringing it forward and indeed I think the minister is less than what minister is here now I can't see but I think it's very important that you know that we deal with this issue because for many many many reasons as you know we have it and many other countries have legislation here and there have been successful prosecutions and seems to be free for all here and I would have to say a question as well the legal profession because you know many cases I know they you know act on the information given to them many times they know well full well that you know it's not truthful that's not proper and many claims are fraudulent because quite simply from the community halls to the GA pits and soccer pits to all the voluntary organisations, Meals on Wheels, you name them, CE schemes, mountain airing, kayaking, indeed many of them have ceased trading because of insurance costs as a result insurance companies tell us of fraudulent claims I think that is shameful the amount of community you know activity and the volunteers that the enablers I call them that put those activities in place you know many of them in recent years playgrounds my own playground in my castle I knew an insurer it's closed because of two fraudulent claims at present and it's closed up and it's locked up now to the children who need it because of unscrupulous scurrilous low-spirited and mean-spirited people who think they can get a soft touch insurance then and I as a business person myself the cost of insurance for business is just frightening and I have had experience over the years where claims went in and you know we would expect that the insurance company would fight those claims but no you find out you think there's been fraud but you find out a settlement is made on the steps of the court any time you don't even know then when a care insurance I have a big family myself and the insurance costs a fortune to get on the road many young people can get um insurance you know can get a care for you know 1500 euro a proper care that's the the past the NCT and our insurance can cost anywhere between five and seven eight thousand uh insurance should be cheaper because you know the the the the the the reasons that um you know you have NCT and everything that you didn't have years ago so as I said the bill the cost of insurance is just crippling and devastating and it's destroying our economy and now with the covert crisis it's going to become more apparent because people won't be able to pay it false and exaggerated claims are devastating businesses and there are little are no sanctions against those who make the exemptions of claims we did see ads on television for a long time uh which your hand in my pocket and for people to report you know where people saw fraudulent claims and we know where they are we've seen them and we've seen the cost of our own county council in timber really recently was staggering I have the figures to hand now but a staggering figure that's paid out in one year for for accident now there's some genuine cases definitely and you often find that those people are seriously into an accident or even a fatality which is worse and their families don't get half uh the compensation they should but same in medical insurance and medical legislation claims and um in those cases is mainly well in the hospital is mainly that the taxpayers puts the bill and the the payouts are staggering but as I said we have to get to grips and get tough on those people who are um serial um serial um claimants and you know you'll see them you'll hear them and we all know them and it's just not acceptable it's not good enough so I am glad that the minister has given positive um uh answer earlier that she was going to um take this legislation and I'm also glad to see this in the program for government but there was aspirations in the last program for government and references have been made to the to the wixford uh td who who with many debate on and the name alludes me now it just he would many administers say um dassey yes indeed michael dassey and we thought we were going to go somewhere but we didn't powerful interests of the insurance companies are too powerful and we might as well have nobody as a regulators across a wide spectrum of areas the regulator for this that and the other with regulators for everything but they're toothless useless and fruitless in the most cases and I mean that I don't say that lightly because that they are all talking to action and they have fine um salaries there we pay a levy to to pay pay for them and they have a big board and they might as well you know rub butter to a fat sow as you know here that's what it's like this it's they have a lot of snouts in the truck and more than snouts in the truck but the ordinary communities the ordinary person the ordinary business people self implied and indeed many of our people that we spoke about here tonight many of them because they do when they get going in the spirit of the dancehall and the siege of illnesses and the fast and their fox trots and the fast ones there are injuries and claims there as well and they are crippled and their insurance has gone up hugely too and they're paying insurance now this year and they can't even operate so insurance doesn't give you any credibility and indeed the payouts and the paybacks are this discount they got for the lockdown was paltry and the teacher told me one day the insurance company has to make money but they can't pay it to everyone so this piece of legislation it just goes to show what private members uh bills and legislation can do and i know deputy murphy was very hopeful and deputy pringle i had him here chuckling and i was talking to myself about this new government if they showed the last dollar we had a number of pieces of bill some were taken and so weren't we had some hope with the minority government being sustained by uh you know a lifeline from fianna fall but this government if it landed to score by with with with with dollar reform and business committee and this match and grab with all the committees we have the hope of getting any uh piece of legislation and every deputy in this house can call and you're the most fair count caller you're my fourth count caller since i came into this house you've been extremely fair but every member is entitled to bring forward good legislation and it shouldn't be rejected because it comes from a member of the opposition and if the government means to go on the way they're going on now with with the way they're treating us in the opposition and uh you know it's it's it's it's a poor out it would be poor outcome for this they're limping home tonight limping home into the summer recess tomorrow and by added that to get it they're like scarlet cats going out to get out a window that's what they're like because another week or two they wouldn't have survived and we'll be into an election that's what and i mean that that's the way they are because the you turn after you turn after you turn it's like the road to damascus and i know there's a road to kill there or the road where it is but um this uh piece of legislation will hold them to account we're hoping to and i have no issue with uh deputy howland but of course that's uh amendment either very very important with the cyber uh bullying and that kind of stuff it's up to the region independence if they can uh have that encompassed in this bill or incorporate it i hope they can but we need to deal with this we need to because people out there you know lose faith in the whole system especially voluntary committees and voluntary boards and company limited by guarantee they have to be to have limited liability because many of those people and they know in the older days and not up quite recently you trust these of ga club you trust these of halls you trust these of different institutions and they were uh sleep as nice because they didn't know how they'd manage so i come in this piece of legislation and i'm glad that it has come from the regional independent group and as i said uh you know we'll see what uh the government will they live up towards to being sure that it's accepted and embraced and amended if necessary you know with nothing is better but get it into committee so the committee is there have it explored and have it uh passed and put into law and then ask the judiciary to wake up and implement it and deal with it and ask our legal legal friends back off as well because not have everyone's hands in our pockets because we just can't survive we're not good thank you very much
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