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Motor Insurance Data

Dáil Éireann Debate, Tuesday - 22 May 2018

Tuesday, 22 May 2018

Ceisteanna (163)

Noel Grealish

Ceist:

163. Deputy Noel Grealish asked the Minister for Finance the most recent, actual or estimated average and total cost of whiplash claims; the most recent, actual or estimated typical premiums for drivers by age, in particular for young drivers; and if he will make a statement on the matter. [22595/18]

Amharc ar fhreagra

Freagraí scríofa

At the outset, it is important to understand that as Minister for Finance, my Department does not collect the information that the Deputy is seeking. 

The only general guidance available on award levels for whiplash injuries is the Book of Quantum. In that Book, the most common type of neck injury is called a “whiplash” injury which is described as an over extension or sprain often suffered in a motor vehicle accident or high impact slip/trip/fall type of accidents.  It states that whiplash injuries can involve a very minor sprain that heals within days or weeks or they can in extreme cases cause long lasting pain and permanent disability.  It is therefore difficult to provide an average cost for such types of injuries as there is such a range of injuries linked to “whiplash”. 

In this respect, the Book of Quantum differentiates between the awards that may be considered for such injuries, ranging from €15,700 to €77,900.  While the recently published Second Motor Key Information Report provides average costs for lower value or capped motor third party injury claims, it does not provide specific values with regard to whiplash claims.  Costs associated with whiplash claims may form a part of these claims costs, however I would not interpret the data within the report in such a way to state that the values represent the average cost for “whiplash” claims. 

The Deputy should note that when talking about the cost of whiplash claims, the costs will also include costs linked to motor third party claims such as legal, medical and other costs.  In this regard, the Department of Finance’s First Key Information Report, published in July 2017, contained data that suggested such costs can account for approximately 40% of the award level provided in cases involving litigation.  

With respect to actual or estimated typical premiums for drivers by age in particular for younger drivers, it is not possible to provide this information.  The Central Statistics Office (CSO) collects data on the price of motor insurance premiums as part of the Consumer Price Index (CPI) each month.  To ensure the soundness of the index, the CSO uses a variety of detailed profiles (including car age, car model, driver experience, driver history) sent directly each month to motor insurance companies that represent a substantial portion of the market share.  The profiles each company receives remain consistent each month so that the CSO can use a continuous "like with like" comparison in the best way possible and in this regard each company is sent a representative set of profiles for their consumer base.  The risks vary based on the detail contained in each of the profiles in order to get a larger spread of the realistic market.  It should be noted that the publication of the price index in this regard is consistent with how national statistics authorities produce such indices in other jurisdictions like the UK. 

Finally, I would note that in the UK, private sector operators provide additional premium price information broken down by other factors such as age, in the fashion requested by the Deputy.  My officials have examined these indices however they have found that each of these indices produce very different results, depending on the methodology used.  The value of producing such information is therefore highly questionable and may not assist consumers in the long run.

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