Jim O'Keeffe
Question:57 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment his views on the way in which motor and other insurance premia can be reduced; and when this will happen.
Written Answers. - Motor and Other Insurance Premia.
Eamon Walsh
Question:59 Mr. E. Walsh asked the Minister for Enterprise and Employment the frequency of motor insurance claims in 1992 in respect of property damage only; and the frequency of motor insurance claims in 1992 involving personal injury.
I propose to take Oral Questions Nos. 57 and 59 together.
An independent survey of motor insurance claims closed in 1992 showed that 65 per cent of the claims were in respect of property damage and 35 per cent related to personal injury. However, the survey also revealed that the cost of personal injury claims accounted for 66 per cent of the total cost of claims in 1992. Property damage claims represented only 13 per cent of the costs and the balance of 21 per cent was made up of legal and associated costs.
The results of the survey, therefore, underline the need to address the issue of the high cost of personal injury compensation claims in this country. In this regard it has been further established from an analysis of personal injury awards by the High Court that the pain and suffering element of these awards constitutes 75 per cent of their total cost.
As I have previously informed the House, my Department is currently examining ways and means by which the pain and suffering element of personal injury claims might be reduced and I hope to have proposals brought before Government by the summer. As the implementation of any such proposals might involve legislation, it would not be appropriate for me to comment further in advance of consideration by the Government of whatever proposals emerge.