Call for debate on personal injury compensation

THE Irish Insurance Federation wants a public debate on the levels of compensation awarded in personal injury cases.

The call came just a day after Transport Minister Martin Cullen pushed through legislation in the Dáil revoking the need for unlimited insurance cover for drivers on Irish roads.

Yesterday, IIF chief executive Mike Kemp said while recent reforms have helped create an environment for insurers to cut premium rates significantly, these reforms have focused on tackling just two out of the three main factors which determine premium levels - claims frequency and the legal and associated handling costs of claims.

“The whole area of compensation levels for personal injury has remained untouched,” he said.

Dorothea Dowling, chairwoman of the Personal Injuries Assessment Board said yesterday was the start of a debate on compensation levels, pointing out that even though most people thought they were too high, that did not mean awards were not fair.

Meanwhile, Fine Gael Transport spokeswoman Olivia Mitchell TD said Government plans to amend the Road Traffic Bill 2004 would in effect leave the public uninsured and, in the worst-case scenario, could result in private individuals losing their homes. “Transport Minister Martin Cullen is imposing last-minute changes to the Road Traffic Bill 2004 which will allow insurance companies to limit their liability under mandatory motor insurance policies.”

Deputy Mitchell said the minister’s move was unprecedented and would impose limits on the amount that insurance companies pay out on behalf of policyholders arising from motor accidents.

“The minister has fixed the amount that can be paid out for injury to property arising from such claims to €200,000. He has not indicated the extent of the limit that will apply arising from injury to the person.”

Deputy Mitchell said reducing the liability of insurance companies to policyholders for motor accidents could leave policyholders exposed if a claim exceeded the level of the limited liability and result in them losing their homes.