Terry Leyden (Fianna Fail) | Oireachtas source

I ask the Leader of the House, Senator Jerry Buttimer, to invite the Minister for Jobs, Enterprise and Innovation to attend the House to discuss the soaring costs of car insurance. There is a need for a review of the workings of the Injuries Board that was established in 2004. It is a State organisation that initially contributed to the reduction in premiums and the maintenance of cost of cost levels in terms of claims. At this stage the high level of awards of compensation are soaring. I refer here for instance to the compensation level here for soft tissue injuries. For whiplash the average compensation is €15,000 compared with £5,000 or thereabouts in the UK. There is a big difference in the awarding of costs for claims.

There is also a significant number of fraudulent claims.Government action is needed in this regard. Fraud is widespread, with accidents being arranged and organised. The level of damages awarded is soaring and the insurance companies have increased premiums by up to 50%. This is making it very difficult for young people in particular to obtain or retain motor insurance and to carry out their work.

We have all come across cases of abuse of the insurance system. I know of one case where an individual got a scrape on his car and received €4,500. Six months later he discovered that he had soft tissue injuries. The doctor said it was fine and no problem at all because the claim had gone in. The insurance company did not carry out a detailed examination or investigation of this individual, even though he had submitted numerous other claims. The company settled for €10,000 or €15,000 because it did not want to incur the cost of medical advice, senior and junior counsel or solicitors. Companies will just settle claims, but who pays? The person who pays the premium carries the can at the end of the day. It is about time action was taken. I ask the Leader to invite the Minister to the House to discuss this issue.

We have people with a wide range of experience in this House. Many of the professions are represented, including medical doctors, senior counsel, junior counsel, solicitors, lawyers and so forth, and they could give their views on the matter. We want fair settlements and fair insurance premiums, particularly for young people. We are paying for the Quinn Insurance collapse, uninsured drivers and so on. These issues are all connected and who is paying? Young people who want to drive a car are being victimised and I ask the Leader to consider a debate on this issue.