Paul Coghlan (Fine Gael)

I welcome the Minister and the measures in the Bill designed to tackle fraudulent claims. The Bill is one of a series of measures the Government has introduced in order to tackle the problem of increased insurance costs, with which we are all so concerned. In response to business and consumer concerns about the high cost of insurance, a number of initiatives designed to tackle the high cost of insurance have been introduced. The commencement of the Personal Insurance Assessment Board Bill, studies by the Competition Authority into the insurance sector and various other measures were trumpeted as a means of reducing premia for consumers and businesses. The Joint Committee on Enterprise and Small Business is also concerned about this matter on which we have produced an interim report and are engaged is ongoing work. Regrettably, the insurance industry seems to be dragging its heels in reducing premia while at the same time chalking up massive increases in profitability. Everyone in this House will have noted with some concern the extensive profits reported by the main insurance companies in Ireland in recent weeks. It is remarkable that a sector which was reportedly on its knees 12 to 18 months ago has managed to stage a Lazarus-like recovery. I have an uneasy sense that the insurance industry may have manipulated the situation to overstate losses and engage in scaremongering so that a more profitable operating environment can be created for it. To the extent that this Bill is part of the Government's response to that reported insurance crisis, I hope the Government will extract a quid pro quo from the insurance sector through massive reductions in premiums instead of some minor tinkering.

I welcome the Bill generally. The reforms proposed therein are long overdue, even if there had not been any insurance crisis. Anybody who has had experience of civil litigation will know how many aspects of court procedure are outdated, archaic and regressive. Tort reform has been long overdue and many of the measures proposed in this Bill will go a considerable distance towards modernising processes and procedures. However, it is important that when introducing this legislation, specifically the aspects that have been dictated by the insurance lobby, we must rigorously assess any measures that restrict or alter the fundamental rights of citizens. I am particularly concerned about the impact of the reduction of the limitation period from three years to one year on claimants who have suffered serious injuries in accidents or as a result of medical negligence. I note the comments from certain patients' groups which suggest that reducing the limitation period will be unjust as many seriously injured people are not in a position to mount a claim after just one year or are uncertain about their prognosis and treatment at such an early stage. It is vital that the Minister reviews the proposals in the Bill to reduce the limitation period so that people who are recovering from serious injury and not in a position to contemplate litigation, or are otherwise unable to be certain as to the extent of their injuries, are not at a disadvantage. It would be regrettable if this Bill, purportedly to address concerns raised by the insurance industry, conferred an advantage on the industry by discriminating against people who have suffered the most traumatic and stressful injuries. I know the Minister is a fair minded man and I am sure it is not his intention to present such difficulties for people. I hope he will therefore address this issue and the concerns that have been raised by patients' groups, professional organisations and practitioners on Committee Stage.