Dáil Éireann díospóireacht -
Wednesday, 1 Dec 1993

Vol. 436 No. 5

Written Answers. - Employers' Liability Insurance.

Eamon Walsh

Ceist:

127 Mr. E. Walsh asked the Minister for Enterprise and Employment the proposals, if any, he has to make employers insurance compulsory against the risk of meeting employees claims for compensation for personal injury, sustained in the course of employment as a result of the negligence of the employer, as is required by law in Great Britain; if he has not such proposals, the reason therefor, and if he will make a statement on the matter.

Minister for Enterprise and Employment (Mr. Quinn)

I would be concerned that the introduction of compulsory employers' liability insurance might increase the cost of insurance to business and thus further increase the insurance cost penalty on employment retention and creation. This cost penalty already exceeds £400 million annually in respect of motor and employers' and public liability insurance.

I understand that many employers' already maintain employers' liability cover. My statutory responsibility as the insurance supervisory authority is to ensure, through prudential supervision of authorised insurers, that moneys are available to meet claims arising from such as employers' liability insurance.

Also, given the current adverse underwriting situation with regard to liability insurance I am not satisfied that employers' liability insurance would be readily available on a viable basis to all employers.

The employers' liability insurance market in the United Kingdom is significantly different from the Irish market, particularly because the cost of personal injury compensation and consequently the cost of employers' liability insurance is substantially less than in this country.

In a sense a balance may need to be drawn between the need for self-sustaining and increased employment and the improvement of working conditions. Perhaps, therefore, employee protection in terms of payment of compensation for accidents at work may be best discussed, initially at least, within employer/employee negotiation arrangements.

It has not been demonstrated that any problems which arise in the area of the non-payment of successful personal injury claims for accidents at work in Ireland can necessarily, or best, be resolved by the introduction of compulsory employers' liability insurance.