Jobs ‘threatened by insurance costs’
Despite the Cabinet’s pledge on Tuesday to give priority to reform of the insurance market, new laws aimed at delivering lower costs have not been drafted, and will not come into force until next year.
The Government Chief Whip Mary Hanafin has confirmed that two new laws, aimed at reducing the cost of delivering compensation to victims of accidents and reforming the law on personal injuries, will not be passed before the Dáil’s summer recess.
Yesterday the Alliance for Insurance Reform accused the Government of failing to deliver on its pledge to make insurance reform a priority.
“I know many companies that have been forced out of business because their insurance costs have trebled in the past few years, and more will go the same way, leaving hundreds out of work this summer,” AIR chairman Joe McDonagh warned.
The owner of the Supermac’s fast food chain has been campaigning for insurance reform for the past 10 years, but was eventually forced to install video cameras on his own premises to prevent customers from making fraudulent claims.
Mr McDonagh believes that Tánaiste Mary Harney and Justice Minister Michael McDowell, who are responsible for the two pieces of insurance legislation, are determined to take on the vested interests.
“But these laws just have not been given the attention they need to fast-track them through the Oireachtas,” he said.
Spokesmen for Ms Harney and Mr McDowell rejected this claim yesterday, insisting they were on target with the timetable for delivering both pieces of legislation.
When Ms Harney announced she would bring in the Personal Injuries Assessment Board (PIAB) Act six months ago, she said it would become law early next year, her spokesman said.
This includes publishing the heads of the Bill before the summer recess, bringing it before the Oireachtas in the autumn and having it passed by the end of the year, the Department of Enterprise, Trade and Employment spokesman said.
“Minister Harney is so committed to this Act that she even set up the PIAB on a non-statutory basis so that it could do a lot of preparatory work before it starts hearing cases next year,” her spokesman added.
The PIAB has already produced a book of quantum which will give a list of awards for specified injuries.
The second Bill, to reform the law on personal injuries, will become law within the timeframe announced by Mr McDowell, his spokesman insisted yesterday.
Mr McDowell said last week he intended to publish the heads of the Bill during this Dáil term and hoped to have the law enforced by the end of the year.
“This is the timetable set out by the minister, and the Bill is on target,” his spokesman said.
