Hibernian, the second largest insurer of motorists in Ireland, today welcomes the Motor Insurance Advisory Board (MIAB) report into the cost of motor insurance in this country.
Hibernian, the second largest insurer of motorists in Ireland, today welcomes the Motor Insurance Advisory Board (MIAB) report into the cost of motor insurance in this country.
Commenting on the report Gary Owens, Managing Director, said: “This report gives a good insight into the motor insurance situation in Ireland today. Hibernian welcomes what the MIAB is saying and is happy to accept the recommendations directed at the insurance industry.
“The substantive issue here is how we reduce the cost of motor insurance for Irish drivers, therefore the focus of change needs to be on the rate of claims awarded and legal costs, which at present amount to 26% of each premium paid. The legal profession and the government also need to participate if we are to see any real change”, said Gary Owens.
In particular the MIAB is calling for the establishment of a book of quantum damages setting out guideline compensation amounts for soft tissue injuries (as in the UK) and promoting consistency across the courts and between judges. Research has shown that average claims’ costs in Ireland are twice that of the UK*. In Ireland circuit court jurisdiction (the amount a court can pay out in claims) has recently been increased from €38,000 euros to €100,000 euros. This will only exacerbate the present problem of exorbitant claims costs.
The MIAB is also calling for the establishment of the long awaited Personal Injuries Assessment Board, which will settle claims outside the courts system. The PIAB would reduce the time in which cases are heard, thereby reducing costs.
Gary Owens acknowledged that the next government will play a fundamental role in achieving the MIAB’s goals. “Whatever the make-up of the government we elect next month it will need to act immediately to eliminate the provisional licence backlog and to substantially increase fines for uninsured drivers. It is only by all of the key players acting together that we can hope to achieve a better end deal for consumers."
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Press contact:
Kela O’Riordan 01 607 8164, 086 606 8842,
kela.oriordan@hibernian.ie
*Tillinghast-Towers Perrin ‘Profitability Study – Irish Motor Insurance’, Nov 2001
Notes to editors:
- Hibernian is Ireland’s largest insurer in the general market and second largest for motor specific policies
- Hibernian is part of the CGNU Group worldwide
- A photograph of Gary Owens is available by ISDN
- Hibernian news releases are also available on www.hibernian.ie