DRIVING DOWN CAR INSURANCE FRAUD CLAIMS
Proposed laws set to tackle big payouts
PROPOSED legislation to crack down on insurance fraud has been hailed as the answer to the claims crisis.
The Alliance For Insurance Reform praised the Personal Injuries Commission yesterday for their work on a report which demands new measures surrounding payouts.
The commission cited Ireland’s damages as among the highest in the world and nearly five times that of the UK.
The average personal injury payout is currently €21,000, while awards in the UK are around €4,000.
AIR’S Peter Boland said regulation of motor insurance is long overdue and the Government needs to act now to quell the costs of premiums nationwide.
He added: “It is now up to the Government to ensure the report’s recommendations are implemented urgently because the insurance issue is a crisis right now for Irish charities, voluntary groups, sports organisations, businesses and motorists and only action right now will solve it.
“While many of the PIC recommendations are already being considered by Government, it is the pace of real progress that is key.
“We note the impact on insurance costs of sky-high legal fees and special damages are not covered in the PIC report but overall this looks like a practical report that deserves urgent attention.”
Details of the document only emerged yesterday and the AIR urged the commission to publish the full findings. The report found false or exaggerated claims had few repercussions for claimants, resulting in widespread practices which caused premiums to soar. AIR’S Eoin Mccambridge said: “The report should be published immediately. Failure to publish just means more delays in a process that has seen too many delays already.”