IHF welcomes new Bill to address insurance costs

The Irish Hotels Federation (IHF) has welcomed the publication today of the Civil Liability and Courts Bill 2004 by Minister for Justice, Michael McDowell.

John Power, Chief Executive of the IHF said that the hotel and guesthouse sector had been vulnerable in recent years to increases in insurance costs and that "false insurance claims, together with the cost associated with their settlement, have played a major role in driving up the average insurance premium in the hotel sector by as much as 351% from 2000 to 2003".

He was hopeful on the ramifications of the new Bill.

"There are a number of measures in this new legislation, which, in conjunction with the provisions of the Personal Injuries Assessment Board, together with the vigilance on insurance costs maintained by the Joint Oireachtas Committee on Enterprise and Small Business chaired by Mr Donie Cassidy, TD, should reduce the insurance premiums in this country to a level comparable with other EU countries", he said.

"I hope that this new legislation together with the recently established Personal Injuries Assessment Board will immediately result in a reduction in insurance premiums.

"I congratulate the Government's commitment to effectively addressing this major burden for Irish industry," he added.

The Bill provides for the reduction of the limitation period for personal injuries actions from three years to one year, ensuring that claims are brought forward without undue delay.

Mediation conferences, chaired by an independent chairperson, are intended to assist parties in reaching settlement of actions, without incurring the costs of a full trial.

The Bill also requires evidence to be backed up by a sworn affidavit so that people who make false and exaggerated claims will have committed an offense and can be jailed or fined under the new law.