Insurance discrepancy hits St Joseph’s costs
CLLR Ian Doyle has requested Cork County Council to lobby the Ministers for Finance and Health to take immediate action to address the huge increase in insurance costs for Section 39 agencies, and to address the huge disparities that now exist between those that do not have access to the State Claims Agency, as Section 38 agencies have.
This affects voluntary organisations such as St. Joseph’s Foundation, Charleville, which, as a result of this development, have seen their annual insurance bill increase from €160,000 in 2012 to €510,000 in 2016.
St. Joseph’s Foundation Charleville provides services for 293 participants in fourteen premises, as well as providing accommodation for 77 adults and children. The total number of children attending the services in their Charleville campus is 1,019.
The Health Service is designated Section 38 and have access to the State Claims Agency, while the voluntary sector is designated Section 39 and do not have access to the claims agency, hence the discrepancy in the costs of insurance, which is a huge burden annually on the voluntary sector.
The plight of St. Joseph’s Foundation was raised in the Dáil last week by Fianna Fáil Deputy Michael Moynihan.
“People are considering the viability of their businesses because of the cost of insurance, particularly in areas where there is a large footfall,” he said. “No decisive action is being taken by the Government with the insurance industry which is crippling householders, businesses and section 39 organisations.”
In response, Tánaiste Simon Coveney said there was a recognition in government that increases in insurance costs were unsustainable.
“It was decided to review the insurance industry ... for the most part, the report and recommendations have been implemented and resulted in motor insurance premiums stabilising,” said Minister Coveney.
“Phase 2 of the approach taken was to examine business insurance costs. The process is under way, but the group has not yet reported.
“When it does, we will take the same approach that we took to the cost of motor insurance, namely, making sure we implement the recommendations made.”