Insurance companies must reduce their premiums

This week's Independent News & Media Irish regional newspapers' column.

Michael Commane

My father was born in 1909 and drove a car from the age of 15 until he was 90.

As long as I knew him, and that was 55 years, I can remember every year when his insurance renewal would arrive in the post that he was in horror at the cost.

My father was the mildest and quietest of men. In all his years driving he had only once made an insurance claim on his policy and that was the result of a small accident I had while driving his car. 

It means the insurance company made a good profit on my father over a long life.

 

I’m not aware of my parents ever making an insurance claim on their home or property. I can imagine my family are no exceptions to the majority of upright citizens who have never abused their insurance contracts.

These days I’m noticing some of the additions that are added to travel insurance policies on age grounds. It seems there is an element of ageism about such decisions.

Any excuse and your insurance increases.

For the last 12 months there has been significant less traffic on our roads, fewer accidents too. Have insurance companies made a proportional reduction to  people’s car insurance premiums?

With one ear I have been following the decision to adopt new guidelines to reduce general damages awards for some personal injuries.

From what I gather a majority of the 166 members of the Judicial Council have passed the recommendations of the Personal Injuries Guidelines Committee. Of the 146 judges who voted on Saturday, March 6, 83 voted in favour and 63 said no.

How transparent was the work done by the Personal Injuries Guidelines Committee? 

At first glance the plan to reduce insurance claims sounds a good idea. The insurance companies have been pushing for it for a number of years. They argue it will mean that insurance premiums will be reduced for the general public.

But when Moyagh Murdock, chief executive of Insurance Ireland was interviewed by Claire Byrne on her radio progamme Ms Murdock was ambivalent as to when the reduced insurance premiums will filter down to the general public.

There will always be people who try to abuse the system but instead of making draconian cuts across the board would it not be a better idea for the relevant parties to weed out the crooks and abusers.

Why should the honest decent person have to pay for those who abuse the system?

When the new regulations come into operation some awards may be cut by half. Under the present system a justified award of €100,000 could well be reduced to €50,000.

It is understandable that judges hand down judgements but surely it’s the job of Government and not judges to set out policy.

Mr Justice Bernard Barton on his final day as a High Court judge last Tuesday commented how insurance companies that campaigned for an end to juries hearing personal injury cases never passed on the savings to their customers.

He was also somewhat sceptical if the new guidelines will reduce insurance costs.