Written Answers. - Motor Insurance Costs.
Eric J. Byrne
Question:
40
Mr. Byrne
asked the
Minister for Industry and Commerce
if he has had discussions with the Minister for Justice regarding measures to halt the rising cost of motor insurance, as indicated by him in an interview (details supplied); the legislative proposals which will be brought forward in this area; and if he will make a statement on the matter.
The first thing I should say is that the newspaper report to which the Deputy refers does not accurately reflect my views. The report included a number of quotations but it also makes assertions in its own right which do not reflect the views which I hold and which I expressed.
I have consulted the Minister for Justice about speculation that has arisen in connection with the impact of the Courts Act, 1988, and the abolition of the three counsel rule. It is timely to recall that the objective of these initiatives was to achieve a less costly and speedier resolution to personal injury claims by increased consistency and predictability in award levels and by reducing legal costs.
It is too early to draw definite conclusions about the extent to which these objectives will be realised, given the limited number of cases heard by the High Court to date and the fact that 40 per cent of these cases have been appealed to the Supreme Court.
The monitoring of the impact of these initiatives will continue by means of consultation with, and exchanges of data between, my Department, the Department of Justice and the insurance industry.
Depending on what emerges from this ongoing monitoring process, it may be necessary to consider additional or alternative actions in the context of the achievement of the objectives of the change to trial by a judge sitting alone or the abolition of the three counsel rule. At this juncture it is not proper to assume that any such future action would necessarily involve legislation.
The Government, of course, remain committed to improving the environment for insurance. I will continue to consult with my colleagues in Government, including the Ministers for Justice and for the Environment, about proposals which may impact on the cost of motor insurance. Of particular relevance are measures under consideration to improve the operation of the courts and facilitate stronger enforcement of the Road Traffic Acts.
