Insurance reformers criticise lawyers

THE Alliance for Insurance Reform (AIR) has launched a savage attack on the legal profession, accusing them of spreading false and blatant misinformation about the proposed Personal Injuries Assessment Board (PIAB).

The AIR said both the Law Society and the Bar Council and the insurance industry were misleading the public about the reforms of insurance claims.

The AIR urged the Government to proceed with two urgent pieces of legislation, one to set up the PIAB and to bring in a Civil Liabilities Bill.

AIR director Gerard McCaughey said reports over the weekend that the PIAB would be held up over funding difficulties were unfounded and that he had been assured that it would be established in

January next year. Mr McCaughey hit out at the legal profession saying it was trying to protect its members who were earning exorbitant fees at the expense of businesses around the country.

He urged Tánaiste Mary Harney, who has made the PIAB a priority for her department, not to back down on reforms or “give in to vested interests”.

He said that in Britain only 5% of all awards in personal injuries cases went on legal and professional fees compared with 45% in Ireland. He added that only 5% of British injury cases barristers were hired compared with 80% here. Mr McCaughey said this was an unacceptable situation given that the law in both countries was similar.

He added that there had been signs that compensation to victims has been decreasing with awards that two years ago being awarded in pounds now being the same in euros.

The Alliance said that the Irish insurance industry was making large profits (183 million last year) and that, while it had reduced motor insurance premiums, employers’ liability insurance was still rising and it wanted premiums cut. The Alliance for Insurance Reform yesterday launched a new advertising campaign to warn of the legal costs in all personal injuries claims.

It said that the campaign will target all politicians to keep up the pressure to reform the insurance market.

Mr McCaughey said Irish competitiveness was being eroded by the lack of competition in the insurance sector. He said many business people were put off starting new companies because they cannot afford insurance.