Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

That is fine. The first aspect concerns getting more players and competition into the market so that we will not be just relying on eight or ten insurance companies. That is exactly the reason the new office was established. It was created to promote competition and it held its first meeting yesterday. We saw that one of the key problems was exactly as the Deputy described it. The structure of the market is very small and dependent on companies from outside the State. That is our number one objective.

I chaired the first meeting of that committee yesterday, and that is an aspect on which I would be happy to come back to the committee and report on. It has been set up specifically in respect of the purpose mentioned by the Deputy. If we achieve much of what is in the action plan, that in itself will help. Bringing a bit of stability to the market will be the best way of attracting new businesses into Ireland. If companies feel that the market here is one where it is not possible for them to predict awards and costs, then that is going to put companies off coming here.

Turning to the second issue, I have also noticed in my meetings with the companies that some of them have scaled back their activities. The representatives from those companies told us that they had been big in the leisure and hospitality areas, but there were so many trips and falls and people crossing the thresholds of businesses that they had been scaling back their activities. Others, however, have increased their activity in the market. Some car insurance companies told us that they have scaled back on providing insurance for those aged under 25 years old, while another company has heavily stepped into that same market. We can, therefore, increase competition in the various insurance sectors by getting all eight or nine companies already there to compete in all the segments in the sector. The purpose of this new office is to promote competition in the Irish market, by bringing in new businesses and getting those currently in the field to do more business. Those companies, however, will want a stable market in respect of the cost of claims. Regarding the EU agency issue mentioned by the Deputy, I do not have the answer in front of me now. We will send a note on that issue to the committee, if that is okay. I might get a note on it now, but I will give a comprehensive answer in writing in any event.

Turning to the cap on claims, that is something which many people before the previous election, including us, said would be considered. We said it would be "considered". That was the word used, because nobody could make a blanket statement that we would guarantee to do something. That is because there may be constitutional implications, especially for the very catastrophic cases. A young child involved in a car accident could live for 60 or 70 years. Who can know that? The Law Reform Commission recently published a report on that specific issue. That report is independent of all of us and we will be guided by it. It is stated in that report that we could pass legislation to set awards at a particular level based on the level of injuries, provided that a judge stepping outside those awards in exceptional cases had to state the exact reasons for doing so.

The idea of having an absolute cap could require a constitutional amendment. Some people will say that would be great, and it would allow certainty in 99% of cases and flexibility in 1% of those cases where judges require it. Other people might suggest that once some people get their foot in the door with the 1% flexibility, there will then be expansion. We are therefore being guided by the report of the Law Reform Commission. Having the Judicial Council set the book of quantum will ensure that it will be written by the judges, and the people will know that. When claimants go to the PIAB seeking awards, they will know that it is not an award which the PIAB made up but an award which the Judicial Council has given to the PIAB to implement according to the book of quantum document. There will be little incentive to take that award before the judges who have already written that book of quantum.