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The Perjury Bill and Compo Culture

The Perjury Bill and Compo Culture

Ireland’s compo culture has meant that Insurance scammers could make false claims in Court against businesses, restaurants, travel companies, public bodies, charities, and even private citizens, to win unfair compensation. These false claims meant that insurance premiums went up for everyone, including the vast majority of honest insurance customers.

Last week, the passing of the Criminal Justice (Perjury) Bill will make it illegal to lie under oath in Court or under sworn affidavit. Breaking of this new criminal law could result in fines of up to €100,000 and 10 years in prison. The Bill’s powers extend not only to the scammers themselves but also to medical or legal professionals who assist them in making false claims.

The consequences of the Perjury Bill for homeowners are clear. Some household bills may be reduced as businesses no longer have false claims brought against them. The obvious first beneficiaries should be consumers of home, motor and health insurance. Depending on the size of false claims these insurers had to pay out, insurance costs might reduce. At the very least, the de-risking of the insurance market should attract more entrants and improve competition.

However, the cost of insurance scams affected all parts of society not just household insurance. Businesses (including restaurants, pubs, shops, buses, taxis, schools, cinemas, hospitals, sports clubs, builders, plumbers, dentists, petrol stations and many more) had to cover the risk of false claims in their insurance premiums. Removing these costs means that the cost and administrative burden on many entities providing services to householders will be reduced. Honest businesses may now finally be protected rather than threatened by our legal framework.

Do you think the Perjury Bill will work? Or is it too little too late? Have you been a victim of compo culture? Is there any other consumer protection legislation you would like to see championed? Leave your comments below.

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John
John from D commented:

Best news for a long time. 

Ross
Ross from D commented:

There is every likely-hood that we will see the same headlong rush to prosecute stunningly few individuals making this another pointless bloating of statute books where the existing issues could have been addressed by utilisation of existing law rather than add-ons. 

Eugene
Eugene from D commented:

I had a very minor traffic accident,the other car was a taxi.Only damage,broken headlight glass.Taxi driver claimed back injury,and my Ins.Co.paid,despite my objections.e.mc carthy. 

Someone
Someone from CE commented:

At least two doctors assessments should be involved in injury assessment and their names read out in court to let the public know if a pattern of doctors names are involved. 

Peter
Peter from D commented:

The insurance companies have questions to answer also and the legal community who urge people to lodge claims in order to get enormous fees.. 

vanessa
vanessa from LK commented:

Sometimes insurance companies settle without the parties consent. Also they should change the system whereby you have set amounts for certain injuries which are indexed linked meaning if the cost of living rises for example by 2 per cent a year the award rises accordingly thus way the courts would not be tied up with so many claims 

Frank
Frank from DL commented:

Long overdue 

Someone
Someone from LH commented:

They ring the Solicitor before the ring the Doctor and nobody has been charged for fraud for making false claims 

thomas
thomas from DL commented:

The laws need to be further tightened to make it more difficult to claim. It is too easy at present. Insurance companies need to get more proactive in checking out claims. 

Someone
Someone from LH commented:

most welcome, and overdue 

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