Cabinet can’t halt high cost of motor insurance

Motor insurances premiums could continue to climb as the Government has admitted it is powerless to stop increases.

Publishing a report on the cost of motor insurance, junior finance minister Eoghan Murphy said it is not possible to place a cap on injury payouts such as whiplash, even though these awards are much higher here than in other countries.

Likewise the Government does not the power to limit rises in premiums which jumped by an average of 38.3% in the first half of last year according to CSO statistics.