Extra resources need to be provided to halt road carnage, says motor insurer
FBD Holdings chairman Michael Berkery said there was and urgent need for resources to be given to improve road safety following 123 deaths on the roads so far this year.
"There is an absolute necessity for a vigorous programme of enforcement by the Garda Síochána of the penalty points system, which will be the key factor in improved driving habits, in the reduction of death and injury on our roads and in the economic cost especially for premium payers," he told the company's annual general meeting yesterday.
"The agreed strategies to improve road safety, with consequent further reductions in premium levels, must be adequately funded and fully implemented," Mr Berkery added.
He told shareholders that for the first time since FBD was established, the company achieved an underwriting profit in motor and liability business, even with a cut in premiums.
This turnaround was the result of a reduction in the number of personal injury claims reported and also the lower than anticipated awards in the past year.
Reforms to the insurance industry have led to lower premiums, he said, but to keep them moving lower it was essential to "eradicate" Ireland's "claims culture."
"It is incumbent on the Government in particular, to maintain the momentum for reform. Resources must be allocated to road safety initiatives and to fully implementing the penalty points regime.
"Otherwise, there is a real risk, through complacency, that we will revert to the old ways, re-igniting the claims premiums spiral," he said.
FBD gave its backing to the Personal Injuries Assessment Board, which it said would reduce the cost of claims.
Commenting on current trading, Mr Berkery said the year to date "performance indicates that FBD's business targets for 2004 will be achieved."
