Mallow Search and Rescue insurance cover risen by more than 50% in last four years
THE chairman of Mallow Search and Rescues has said the high cost of insurance cover is putting “huge pressure” on the organisation’s ability to maintain and develop its operational services.
John Woulfe told The Corkman that the groups annual insurance costs have increased by more than 50% over the past four years.
Mr Woulfe said the voluntary group, which receives no statutory funding and derives its annual income from fundraising events and private donations, is now forced to shell out between €17,000 and €18,000 per annum on its various insurance policies.
“Because of the work that we do we have to have a variety of different policies in place, including public liability, cover for our vehicles and equipment, and for individual members,” said Mr Woulfe.
“These all add up. We are lucky in that we are able to afford to pay these each year, but there is no doubt but that the ever increasing annual costs of insurance cover does put huge pressure on our finances,” he added.
Mr Woulfe cited a particular instance where the unit was quoted €3,500 to insure a newly purchased vehicle, which in turn left them with no option but to take another one of their older vehicles off the road.
“We had no option but to take the no-claims bonus from the older vehicle and apply it to the new one as there was no way we could justify the costs of insuring both,” said Mr Woulfe.
He said the financial pressure caused by spiralling insurance premiums has also impacted other operational aspects.
“For example, it can prohibit us from taking on more volunteers because they have to have insurance cover. In addition, the money we spend on insurance could be better spent in other areas, such as buying new equipment and upgrading existing equipment such as boats and diving gear,” said Mr Woulfe.
Like many of the respondents in the PPN and Alliance for Insurance Reform surveys, he felt the Government was not doing enough to tackle high insurance costs.
“Every week we hear about voluntary and community groups having to restrict or even cancel services because of rising insurance premiums. Many small businesses have also been forced to shut their doors and lay off employees,” said Mr Woulfe.
“It seems the insurance companies have a cosy cartel and can do what they want, regardless of the impact this is having on community and voluntary groups across the country. The Government has to step in and take action to ensure these bodies and small enterprises can get fair and equitable insurance rates so they can maintain services and remain financially viable entities,” he added.