John Clendennen (Offaly, Fine Gael) | Oireachtas source

I thank the Minister of State. In no uncertain terms, this will lead to an increase in premiums and costs to every one of the societal areas I mentioned in my earlier contribution. General damages awards in Ireland remain significantly higher than in Europe. Increasing them further will only put more businesses at a competitive disadvantage and place even more pressure on strained sectors of society. We have made meaningful progress on insurance reform but adopting this proposed 16.7% increase in general damages would be a step backwards. It would undoubtedly lead to higher premiums and undermine the good work to date.

There are three areas we need to act on. First, we must defer this proposed increase in general damages. Now is not the time to impose further costs on policyholders and businesses. Second, we need greater transparency. There is a data vacuum around cases settled after the IRB rejection but before court. I propose amending legislation to require these settlements be registered with the Injuries Resolution Board or another suitable agency or agreed independent body so that we can get regular reports in a timely and objective manner as to what is happening between the IRB and court.

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Third, we need to rebalance the system. Claimants should either have a clear incentive to accept IRB awards or a disincentive to reject them. For example, if a claimant does not achieve a set premium over the IRB offer through litigation, they should be liable for their own costs.

If awards continue to be reviewed upwards every three years and if it takes two and a half years to settle a case, claimants will wait it out and litigate. This creates even further uncertainty for insurers, it increases legal fees and, ultimately, it drives up premiums. I urge the Minister of State to convey the message to the respective Minister to act now to protect the integrity of insurance reform and ensure a fair, sustainable and affordable system for everyone.

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