New Bill to crack the whiplash plague on premiums

MOVES are under way to tackle one of the major bugbears of our compensation culture – ‘easy payday’ insurance claims for whiplash injuries.

Whiplash injury payouts in Ireland are on average €15,000 per claim, which is vastly more than is awarded in the rest of the European Union.

In the UK, settlements are an average of €5,000, while in France and Spain compensation for injured motorists is capped at €3,000. What’s more, whiplash cases make up 80% of injury claims here, but they account for just 3% of claims in France.

Now TD Willie O’Dea is behind drafting legislation which would bring Ireland’s level of claims in line with the rest of Europe – a move he says would lower motor insurance premiums.

His Bill is separate from the Personal Injuries Amendment Bill which is currently working its way through the Oireachtas and is aimed at stopping fraudulent personal injury claims.

Mr O’Dea’s initiative follows a recent AA Ireland survey that found that insurance premiums are still rising – with over half of motorists saying they were hit with a heftier bill this year.

The Limerick TD insisted the trend of rising insurance costs could be successfully tackled once whiplash awards are capped at realistic levels. The Fianna Fáil TD said: ‘The Government has had various committees, reports, statistics, analyses and studies about this problem. But they still continue to prevaricate, and insurance companies still continue to profit.

‘In my view the basic reason for the high and increasing insurance premiums in this country is court settlements – the amounts being awarded by the courts.

‘The Government will have to introduce legislation which will provide a maximum amount that can be granted for a whole list of injuries in respect of which people go to court.’

He added: ‘The people in this country are being robbed by insurance companies. Insurance premiums for people who’ve had no accident and no claims are rising inexorably... Control the level of awards and you will bring down the cost of insurance. That is the only way to do it. It’s the honest approach and I am preparing legislation on that and putting it forward for consideration by the Government.’

Mr O’Dea’s comments follow similar concerns raised recently by the AA’s Conor Faughnan, following the findings of the AA Ireland survey back in early April.

Mr Faughnan said: ‘The average motorist is still paying 20% to 25% more for insurance than they would have in 2015.’

A report last month found the cost of motor third-party injury claims below €250,000 rose 42% between 2011 and 2016 mainly as a result of claims for whiplash. Comment – Page 12

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‘It’s the honest approach’