Oireachtas Joint and Select Committees

Thursday, 16 February 2017

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

Report on Cost of Motor Insurance: Minister of State at the Department of Finance

9:30 am

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

I think the Chairman is referring to section 30 in the Courts and Civil Liability Act. In the report, we have recommended that this be reviewed with a view to possible amendment. We noted in our work that the section may need to be improved to make it more robust so that, if it were put in place, the database would have better information that we could track. We have that in the report as a specific action, that is, to have the provision reviewed, possibly amended and then implemented. On the jurisdictional limits, we were told by insurance companies that this was feeding into the increased cost of incurred claims. These are claims that have not yet been paid out but there was an anticipation that there would be higher costs because they were going into a lower court but with a higher limit for payout. We do not have enough data yet to be sure of that, but another action in the report refers to doing a deep dive into the information as it becomes available and as awards are granted to see exactly what is the impact. If it has had a negative impact and there has been an unintended consequence, changes can be made to the legislation to reverse what has happened.

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