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Dáil
‹ Ceisteanna ar Reachtaíocht a Gealladh - Questions on Promised Legislation

Ghost brokers insurance fraud

Summary

Deputy Calleary raised reports that over 10,000 motor policies may involve ghost brokers using false details and stolen cards. The Tánaiste said Gardaí were investigating and liaising with insurers, and the Government would stay in contact.

This morning, Fran McNulty, consumer affairs correspondent for RTÉ, relayed a story to the effect that more than 10,000 motor insurance policies in this country have been taken out from what are called "ghost brokers". This has been discussed by the finance committee in the Oireachtas. Ghost brokers apparently falsify information, sometimes using stolen credit cards to pay for policies on the part of unsuspecting customers who believe they will be covered for motor insurance but who are actually not. They often only find out when they go to make a claim. What action is the Government taking on foot of this? Has he engaged with the insurance industry to ascertain the full extent of the problem and the controls being put in place by the industry to stop this from happening?

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Simon Coveney The Tánaiste Fine Gael

I heard about this issue only this morning, as I am sure the Deputy did. My understanding is that the matter is very much under investigation by an Garda Síochána. The Garda Síochána is liaising with the insurance industry as a whole to try to get a handle on the extent of the problem, which seems to involve significant numbers. It is consumers who are vulnerable. They believe they are insured but are not in some cases. This is a criminal investigation that the Garda is resourced to and will pursue. We will, of course, keep in close contact with the Garda to determine whether it is appropriate, through policy or legislation, to give it more help that it may need.

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