An Garda Síochána, Insurance Ireland and the Alliance for Insurance Reform have signed a memorandum of understanding (MOU) on the reporting of insurance fraud.
The new protocol sets out a process by which suspected insurance fraud is to be reported in order to ensure a co-ordinated, uniform and consistent approach to reporting, recording, assessment and investigation of suspected cases.
Signing of the MOU was a part of the Government's commitment to boost cooperation with An Garda Síochána and the sector as part of its insurance reform programme.
"People should not have to absorb insurance fraud costs into their motor, home or business premiums," said Jennifer Carroll MacNeill, the Minister of State for Financial Services, Insurance and Credit Unions.
"We are determined to change the culture and practice of insurance fraud in Ireland. Today is an important step in that."
The development was also welcomed by the Alliance for Insurance Reform, which said it would provide for a more streamlined and consistent approach in tackling this issue.
"The Gardaí’s proactive approach in developing the MOU should be positively acknowledged by all with a stake in insurance reform. Unfair claims are not a victimless pursuit - they harm all of us," said the alliance’s Chairman, Padraig Cribben.
But Chief Executive of the organisation, Brian Hanley, said insurance companies must also now increase their fraud investigation resources and adopt a policy of refusing to settle suspect claims.
"There is little point in decrying them otherwise," he said.
"Insurers often speak about the harm such claims cause and yet it is questionable how much resources they truly invest in detecting it."
