A Waterford Insurance broker says something needs to be done about the lack of consequences for people who take out bogus and over-exaggerated claims.
Oliver Murphy from Oliver Murphy Insurances has echoed the concerns of the head of FBD insurance who today claimed that judges are too soft on exaggerated compensation claims.
In recent days there has been a war of words between insurance companies and politicians and today CEO of FBD Fiona Muldoon has hit back at claims
that her industry is making huge profits off customers.
Waterford insurer Oliver Murphy says that people can purge themselves in court, over-exaggerate their claims and face no consequences:
"That person effectively can walk out of the court. They may not have the financial means to pay the costs if costs are awarded against them and the insurance companies will not invest any further in procuring solicitors or anyone else to try and extract money for them because its probably good money after bad. So that's a problem and something needs to be done.
"Everyone wants people to be looked after when things go wrong, that is the whole purpose of the industry that we are in.
But if you are a business person and you have a number of claims against you and you know in your heart of hearts that the vast majority or some of them are inflated or false, it is a very difficult thing to get up in the morning with the same gusto to approach your business to try and keep it going when you have this threat of a payout against you and an increased premium the year after."
