Anthony Lawlor (Fine Gael) | Oireachtas source

I am grateful to the Chair for the opportunity to contribute. I am not a member of this committee but I have a fierce interest in it. I also have a Bill going through the Seanad that passed Second Stage. There are questions about it but its purpose is to cap awards in the courts. I have done a fair bit of research. I think I might have been speaking with Mr. Cahalan regarding this. The problem is fourfold. We all pay insurance levies and up to 7% of a premium is a levy. That is related to Quinn Insurance and all those insurance companies that failed. Profits are also part of the problem. People have spoken about excessive profits. I am not anti-profit but there is a problem when they are excessive. Fraudulent and over-exaggerated claims are a problem. Insurance companies are not doing enough to go after fraudulent claims. We as legislators have to do something with regard to people who bring fraudulent claims that are thrown out in court. We should pursue them through the courts for making fraudulent claims.

The issue that is key for me is the awards. I agree that the rewards are excessive. They are four and a half times more than in the UK and way out of sync with Europe. The awards are high across the board, especially for soft tissue injuries. People have mentioned changing the book of quantum, which has been highlighted here. It is not a matter of changing the book of quantum but changing what the judge's award. I will not go on too much about it but I will ask Mr. McMahon two questions. If his company is defending a claim and judge A or judge B is hearing it, and it knows that judge A will make an excessive award while judge B will give a reasonable award, does it settle before it goes into the courts if it knows that judge A will make an excessive award? If judge B is taking the case, who will make a reasonable award, does the company let it go through the courts? Is that a fair assessment?