Insurance reward for firms with good safety record

COMPANIES which prove they are taking proper health and safety precautions to protect their employees and customers will benefit from lower insurance premiums, according to the Tánaiste.

Insurance companies are working with the Health and Safety Authority to develop a system whereby small and medium sized companies with good safety records would get a reduction in their insurance premiums.

Where companies had a good compliance record, the insurance companies will reduce premiums, Ms Harney said.

Companies will have to fill out a simple form drawn up by the HSA on their efforts to reduce claim and improve safety but the State agency will not police the system.

The Tánaiste said there were many problems with small and medium enterprises in relation to insurance. Employers representatives estimate that more than 2,700 jobs have ben lost due to the cost of high insurance.

Irish Insurance Federation chief executive Michael Kemp is believed to have met with HSA chief executive Tom Beegan on the issue.

But the Irish Insurance Federation said the plans were still at a very early stage and that the liability insurance market was still a loss making area.

“The IIF welcomes and supports any initiative that means employers will improve their risk management procedures,” a spokesman said.

The Tánaiste said the cost of insurance was a serious concern to all sectors of society and she wanted to focus on the cure rather than the disease itself. Compensation culture was deep seated, deep rooted and there was a large volume of claims, she said.

Compensation claims will be dealt with in a speedier and cheaper manner when the Personal Injuries Assessment Board is up and running by next year, Ms Harney said.

Ms Harney said the assessment board will operate 12 hours a day, six days a week and will cut out the need for lawyers to be involved in the process.

Already the PIAB is operating on an interim basis and is drawing up a list of awards for personal injuries.

At present it takes genuine claimant six times longer to get their money in this country than in Britain, she said.