Insurance fraud tourists are coming to Ireland because of high payouts on claims.

That's according to the Motor Insurers Bureau of Ireland who say 1 in 8 claims they receive are suspicious.

The average cost per uninsured claim is more than 54,000 euro - and the Department of Justice is looking to crack down on those who lie about their claims.

MIBI chief executive David Fitzgerald says the high level of payouts is leading to claims tourism:

"People fly in to Ireland for the weekend to arrange an accident, lodge their claim here - it is a high award jurisdiction - and then fly home again having staged their accident," he said.

"It is phenomenal."

AA spokesperson Conor Faughnan says claims like these, and insurance fraud, cost motorists a lot every year.

"In the case of motor insurance, it probably costs in the order of €200m per annum and that adds about €50 each to the private motor insurance policy of all of us - every singly driver," he said.

It comes as the government is considering a law change so that insurance fraudsters face jail time.

The changes would make perjury a statutory offence.

Neil McDonnell is the CEO of ISME, he says the public liability insurance premiums have increased two and three-fold for some companies because of fraud.

"They are handing over very substantial amounts of cash to people who, in the most tenuous, of circumstances are claiming personal injuries have taken place," he said.

The Department of Justice is now looking at clamping down on people who are lying for cash.