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Dáil Éireann díospóireacht -
Wednesday, 1 Nov 1989

Vol. 392 No. 4

Written Answers. - Motor Insurance Costs.

36.

asked the Minister for Industry and Commerce if he will make a statement on the trend of motor insurance costs since juries were abolished; and the implications thereof.

The Courts Act, which abolished juries in personal injury cases has been in operation since October 1988. The objective of the changeover to trial before a judge sitting alone was to bring greater consistency and predictability into the award of damages in such cases. It was also hoped that there would be a more even and perhaps fairer application of the principles of the law of tort and that greater account would be taken of the impact of contributory negligence.

The limited evidence available to date has led to speculation that, in a number of cases heard by judges sitting alone, award levels may have risen, particularly with regard to certain types of injury. However, the limited number of these cases and the fact that 40 per cent of them have been appealed to the Supreme Court, clearly emphasises that it is, as yet, too early to draw definite conclusions about the impact of the Courts Act on the level of awards. Indeed, at the time of the passing of the legislation, it was expected that it would be some considerable time before a pattern would emerge on award levels. The result of the appeals to the Supreme Court will, of course, provide some further indication of possible trends in the level of awards. I would add that the vast majority of personal injury cases do not proceed to a verdict in the High Court but are disposed of by way of settlement or withdrawal. Clearly it may be some time yet before it will be possible to draw conclusions on how settlements are being affected by the level of awards by the court.

The Government is fully committed to improving the environment for liability insurance, and the Ministers for Justice and the Environment are considering further initiatives regarding the operation of the courts and the enforcement of the Road Traffic Acts.

I must, of course, stress that the rates for motor insurance are determined by the claims experience of underwriters — both frequency of claims and levels of awards. Despite claims experience which has not improved, and indeed may be worsening especially in terms of the number of claims, many motorists are now paying less in real terms for their insurance than they were two years ago. As Minister for Industry and Commerce it is my intention to ensure that should the claims experience of underwriters of motor insurance improve, whether on foot of the Courts Act, 1988, or any other Government initiatives, appriopriate benefits will be passed on to the consumer.

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