Insurance costs must be slashed after a 42% drop in personal injury claims, says Deputy Pearse Doherty.
The Sinn Féin spokesperson on Finance has called on the insurance industry to slash premiums as figures released by PIAB show the huge drop across all categories of claims.
The Donegal TD called on the Government to support his Judicial Council (Amendment) Bill which would hold insurance companies to account and pressure them to reduce prices in line with the reduced cost of claims.
Speaking today, the Donegal TD said “I welcome the second report of the Personal Injuries Assessment Board on average award levels since the introduction of the Personal Injuries Guidelines in April 2021.
“The report shows that since their introduction, the average value of personal injury awards has fallen by 42 percent across all claim categories – that includes motor, public and employer liability.
“This will have led to a significant reduction in the cost of claims for insurance companies.
“We have also seen a shift in overall award levels – with 20 percent of awards now under €5,000.”
He added this could also lead to a reduction in legal fees over time.
“These developments must now be met with an immediate reduction in insurance premiums that reflects, euro for euro, the reduction in personal injury awards.
“These guidelines were not introduced to prop up the profit margins of insurance companies but to drive down the insurance costs of motorists and businesses.
“My Judicial Council (Amendment) Bill, which passed Second Stage of the Dáil and comes before Committee in the coming weeks, would require the insurance industry to report to the Central Bank detailing how it has or hasn’t passed on these savings to customers.
“This would allow the Dáil to hold the industry to account and apply downward pressure on prices.
“While these recent figures from PIAB show that the Personal Injuries Guidelines have driven down award levels, we need legislation such as this to ensure these savings are passed onto consumers.
“This is what we must now see.”