The head of Insurance policy Ireland said today that claims with regard to whiplash in motor mishaps here today accounts for as much as 80 % of motor insurance promises compared with merely 3 % in some other countries.
Kevin Thompson, leader of the company said right now awards with regard to whiplash inside Ireland typical EUR fifteen, 000 per case in contrast to EUR 5, 000 in the UK and EUR 3, 1000 in France and Spain.
He was responding to feedback from AIG, the tour’s biggest insurer, which would like Ireland to take into consideration banning whiplash claims to aid counter increasing motor insurance coverage charges also to avoid the regular cost of premiums hitting EUR 1, 000.
Car insurance monthly premiums have seen an increase in excess of 30 per cent in policies being renewed within the first 8 weeks of this year with conjecture that there is actually a further increase still.
Mr. Thompson said fraudulent claims are an additional increasingly big problem, adding EUR 50 to each car insurance policy.
Speaking on Newstalk radio, Mr Thompson said there are a lot of aspects driving the existing increases within insurance premiums.
Improved premiums were not good for the industry as this tends to lead to more uninsured motorists on the streets.
He said above an extensive period there has been a continuous increase in the frequency of insurance claims and this had been happening at a time when the degree of awards by the courts had increased by 14 percent.
This could be linked to changes in the legislation of the Signal Court where that courtroom can now award up to EUR60, 000 although previously it was up to a limit of EUR38, 000.
Mr Thompson said legitimate costs were another substantial factor, sales for poisonous of local currency in terms of prizes that have been paid out, as legitimate costs take into account 60 per cent of total compensation within litigated situations.
“I’m not necessarily saying typically the courts are an easy touch when it comes to whiplash claims but as a society we need to determine what is the degree of compensation that people want to offer people”, Mister Thompson stated.
“If we would like to have reasonable awards for individuals in mishaps then they ought to be compensated at a reasonable level”.
This individual said it had been difficult to anticipate how insurance costs would go within the coming 12 months.
“We require the unpredictability out of the market” he said.
“If we can take that will out of the expense of claims, reduce the level of honours for whiplash, keep lawful costs lower, then we all potentially have a chance of stabilising claims. inch