Vol. 550 No. 5
32 Mr. McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether it is desirable that employers' liability insurance should be mandatory; and if she will make a statement on the matter. [9365/02]
While employers' liability insurance is not compulsory in Ireland, surveys carried out indicate that approximately 90% of companies were covered, either by commercial or self-insurance. The introduction of a statutory requirement for limited liability companies to have certain minimum levels of insurance cover in place, while trading would be a radical departure from existing practice. The Deloitte & Touche management consultants' report on insurance costs in Ireland back in 1996 pointed out a number of possible disadvantages to having compulsory employers' liability insurance: distortion of the market; special arrangements being needed to insure bad risks, as in the case of motor insurance, possibly increasing premiums overall; companies that currently do not have insurance are unlikely to have the highest safety standards; difficulties with restrictions on market capacity; and possible negative effect on safety in the workplace.
There is also the possibility that general insurers in other EU member states might be discouraged from writing business in the Irish market, if employer liability cover were compulsory, since they would have to participate in arrangements designed to ensure that all risks could receive a quote. They would also have to contribute towards an uninsured employers fund. While I accept that there are also possible advantages to having compulsory employers' liability insurance, I believe that any such proposal would need very careful consideration and would involve detailed consultation with the social partners.
