Barristers take stand over insurance

BARRISTERS have launched a blistering attack on the insurance industry and urged the Government not to proceed with plans to revoke the need for unlimited insurance cover for drivers.

The Bar Council said numerous concessions to the industry have been made to date, without any benefit for the motorists, a claim denied by the Irish Insurance Federation.

The insurance industry believes the whole area of compensation levels must be reformed.

Speaking on behalf of the Bar Council, chairman Hugh Mohan said: "The insurance industry make hundreds of millions of euro annually; their profits soar dramatically year after year, all funded by their customers."

Mr Mohan said the introduction of the Personal Injuries Assessment Board had not led to a decrease in premiums. "They have called for a cap on awards and they are now getting it, with no undertakings to pass on savings. They run ads blaming clients for making claims.

"They blame lawyers for increasing costs. They lobby for change and they get it, which merely enables them to make more money. Yet they have given no undertakings to reduce premia and are subject to no scrutiny by Government into the extraordinary profits these few companies are making at customers' expense."

Mike Kemp, of the insurance federation, said the comments "reek of desperation" and described arguments made by the Bar Council as a "joke" and inaccurate. He said profits were in line with other businesses and the industry did not ask for a cap on any awards.

The Bar Council has written to Enterprise Minister Micheál Martin. In the letter, the council blamed poor management and inefficiency within the industry and the stock market for the high cost of insurance.

"The latest ploy perpetrated by the insurance industry is to target victims' compensation. The insurance companies now seek legislative changes so that they will not have to pay out full compensation to those with catastrophic injuries," said Mr Mohan. "This will expose the victims and the insurers' own clients to personal liability."