Move to reduce compo case costs
Proposals for the new board, already strongly opposed by lawyers, will go before Government in September.
A spokesperson for the Tánaiste said the move was part of a raft of measures to help cut insurance costs. He rejected lawyers’ arguments it would result in unfairly reduced compensation.
“The Personal Injuries Awards Board is about cutting the cost of delivering compensation. It is not about reducing compensation levels,” Ms Harney’s spokesperson said.
The news came as Ms Harney yesterday introduced regulations governing the renewal of motor insurance policies. These require insurers to give all motor policyholders a minimum of 15 days’ written notification of the policy renewal terms, along with a copy of the no claims bonus certificate.
The new regulations take effect on October 31 and are designed to ensure that motorists have ample time to shop around for a more competitive quote.
“In the past, late notification of renewal policies from insurers has curtailed the ability of many consumers to shop around for the cheapest and most suitable insurance,” Ms Harney said.
The introduction of these regulations was one of the 67 recommendations contained in the recent Motor Insurance Advisory Body (MIAB) Report.
“The Government is committed to implementing the recommendations of the MIAB, and I am delighted to be able to bring forward this important change in the law so quickly as evidence of that commitment.
“It is my clear intention that the other recommendations of this report are treated with the same urgency,” the Tánaiste said.
Insurers failing to implement the regulations face a fine not exceeding 2,000 or to imprisonment and/or 12 months in jail, if convicted in a District Court.
If convicted on indictment, they face a fine of over 60,000 and/or up to five years in jail.
Continuing contraventions leave offenders open to daily fines per offence of between 250 and 600.
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