Insurance companies cannot pocket savings from lower payouts, notes Naughten

The Personal Injuries Assessment Board (PIAB ) has reported that with the average injury payout reduced from just under €24,000 to just over €14,000, the insurance industry must not be allowed to pocket these savings and must instead pass them on to their customers, according to local Independent Deputy, Denis Naughten.

“High insurance premiums are having a devastating impact on our economy forcing and forcing businesses to close,” stated Deputy Naughten, who has campaigned strongly in Dáil Éireann for the introduction of new guidelines to reduce payouts.

He welcomed the news that insurance payouts have reduced by 40 per cent in the last five months.

“While it is clear there is no single measure that will resolve all of the challenges and issues with insurance, it is imperative that when savings are made as a direct result of actions by Government and Dáil Éireann that these are passed on to customers.

“As a result of the Criminal Justice (Perjury and Related Offences ) Act 2021, which was brought forward by my colleagues and I in the Regional Group, insurance scammers now face up to 10 years in jail and a €100,000 fine after a new law was enacted in July 2021 to crack down on ‘compo culture’.

“In March of this year we also introduced a Private Members Bill - the Civil Liability and Courts (Amendment ) Bill 2021 – to the Dáil. The Minister for Justice, Helen McEntee, gave an undertaking to address the issues and introduce a bill of her own, which we agreed to. However, we will re-introduce this legislation if the Minister does not fulfil her commitment.

“We are now in a position where we can see significant progress in the area, but the progress on reductions in claims will only have the desired effect if we see a significant reduction in insurance premiums,” Deputy Naughten concluded.

 

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