People caught making fraudulent insurance claims could face more stringent penalties under a new Fianna Fáil proposal, which will be debated in the Dáil tonight.
Speaking to the media this morning outside Leinster House, the party's Finance spokesperson Michael McGrath said: "We need to get tough on fraud, it is a significant factor in relation to spiralling insurance costs".
He said: "Where a claim is thrown out by a judge on the basis of a fraudulent claim and person knowingly provides false or misleading information as part of the claim, the presumption shall be that the costs are awarded against the plaintiff and in favour of the defendant in those cases"
The exception to this would be where the judge believes this would be an injustice to either party.
Mr McGrath said that his party is not saying the fraud is the only factor behind high insurance costs but it is a significant factor.
He said: "When you talk to policy holders who are in business, who are running a child play centre, a leisure centre, a creche, a pub or a night club, anywhere where there is a significant degree of public footfall, they will all tell you different stories and give you examples."
He said the reality is that there seems to be no consequence where a fraudulent claim is brought and thrown out of court.
The biggest price is that somebody has to pay is they may find their story being told in a newspaper. But there is no follow up in terms of prosecution being brought.
His party colleague, Senator Catherine Ardagh, said the new legislation will act as a deterrent.
She pointed out that at the moment if you are a plaintiff applicant in a case and you do not own your own home, or if you do not own your own assets there is "absolutely no deterrent for you in losing a case. There will be nowhere to attach a costs order.
"This piece of legislation will say to people that if they lose a case and they are convicted of fraudulent behaviour you could go to court. So it is a huge deterrent for applicants acting fraudulently."
