Vol. 525 No. 2
234 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has for reducing public liability costs for voluntary groups in view of the fact that the cost of public liability insurance is presenting adverse consequences for voluntary activity; and if she will make a statement on the matter. [24182/00]
237 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans her Department has to reduce public liability costs for voluntary groups in view of the fact that the cost of public liability insurance is presenting adverse consequences for voluntary activity; and if she will make a statement on the matter. [24211/00]
I propose to take Questions Nos. 234 and 237 together.
There has been extensive examination of the factors contributing to the relatively high level of insurance premiums, in the area of public liability. This examination has focused on a number of the key cost elements, including the levels of personal injury compensation and the costs associated with settling compensation claims. Concurrent with this examination, efforts are being made to identify measures, which both individually and cumulatively could have a moderating effect on public liability insurance costs.
The 1996 Deloitte & Touche Report on the economic evaluation of insurance costs found that the main contributory factors, to rising premium costs, were the high legal costs component of small claim settlement; the faster rate of medical cost inflation and the high level of general damages awards, relative to special damages in smaller claims.
The Deloitte & Touche report also identified improved health and safety measures in workplaces as a way of reducing costs. I would regard the initiatives on the establishment of affinity schemes for small businesses and the development of a voluntary code of practice, in safe working and accident prevention, as significant and positive measures being taken by Irish business, to reduce the cost burden of accidents in workplaces.
I am aware that the relative high cost of public liability insurance can present adverse consequences for voluntary activity. However, it is worth noting that very often there can be substantial differences in the quotes offered by the various insurance companies for liability cover and I would always encourage people, including voluntary groups, to shop around for a competitive quote or to engage the services of an insurance broker.
In the case of public liability, and particularly for voluntary organisations, it is also important that organisations consider meeting with insurance companies so that the insurers are completely aware of the level and extent of the risk for which cover is sought. Very often an insurer can quote for cover in excess of what is actually necessary. An example would be an insurer quoting for liability cover for an entire year when in fact cover is being required for weekends only.
