End the payout farce

FOR years, Ireland’s compensation culture has been treated as something of a joke. But the statistics illustrate in the starkest possible terms that it is no laughing matter. Four out of every five personal injury claims in Ireland are for whiplash, whereas the proportion is as low as 3% in other jurisdictions. Meanwhile, whiplash payouts here average €15,000 as compared to €5,000 in the UK. Awards are capped at €3,000 in France and Spain.

That Willie O’Dea is drafting legislation to address the matter should be welcomed. Any effort to reduce fraudulent and/or exaggerated claims can only be a good thing – and the same applies to extravagant payouts in cases where genuine injuries were suffered.

Given the length of time that we have had this situation, however, it is shocking it hasn’t been adequately tackled before now. Nor, for that matter, is it good enough that this proposal is coming from the Opposition benches.

The plain reality is the compensation culture is costing us all dearly in terms of increased insurance premiums. There is an onus on the Government to make sure the balance is redressed once and for all.