The Alliance for Insurance Reform has accused insurance companies of failing to pursue fraudsters because of 'eye watering' legal fees.
It claims providers are settling claims they suspect are bogus in order to avoid sky high court costs.
This comes as CSO figures show just 84 fraudulent claims were recorded last year, when the average claims total is about 33,000 a year.
Alliance for Insurance Reform Director Peter Boland says legitimate customers are being left to pick up the bill to pay the fraudsters:
"It is equally clear that the insurance industry isn't taking those fraud cases seriously. And it's the repeated experience of our members that insurers are happy enough to accept a fraudulent claim and often pay out in order to avoid the legal fees that will be associated with pursuing the claim".
