Oireachtas Joint and Select Committees

Wednesday, 7 September 2016

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Rising Cost of Motor Insurance: Minister of State

11:00 am

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

A number of factors need to be considered in this context so we can improve the Injuries Board. In addition to looking at the legislation that underpins the board, we can look at legislation relating to the provision of legal services, the obtaining of medical tests and the availability of data. For example, we can look at the grading of different types of whiplash.

The legislation underpinning the Injuries Board is being examined at present. In addition, consideration is being given to legislation in other areas that is directly relevant to how the board does its work and how we can ensure the Injuries Board is the de factoplace for activity of this kind. If it is not the de factoplace, we need to make sure anyone who is settling before or after the board does its work settles at basically the same price. When the officials from the Injuries Board come in, they will say that the main intention behind the establishment of the board in the first instance is being achieved. The evidence for that is the fact that just 10% of cases are going to litigation. They will also mention that they do not have transparency in 70% of cases. I would listen to what they have to say because they have a number of good ideas.

The Chairman is right when he speaks about the damage that is being done to competitiveness in the economy. This is affecting individuals and industries in the economy. We are also seeing the significant risk of no insurance. According to the industry, this is adding to premiums. Taxi drivers are in a very difficult situation. I was in a taxi when someone attempted to cause a fake accident. Taxi drivers are able to spot how and when this happens. Some people believe taxi drivers are quicker to settle in cash, without even going to insurance companies, because of the damage claims can do to their insurance policies.

All sorts of things are happening and are not even being recorded. These things are negative consequences of the current situation we have. We need to find ways to address all of them. If the committee decides in two or three weeks' time, after it has done this work, that it considers the Injuries Board, and the attendant factors to the Injuries Board in relation to the different areas of legislation, is the way to go, I will come back in then and we will look at it in terms of the work we have done on our side.

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