Friday 13th February 2004

IHF WELCOMES BILL TO TACKLE INSURANCE COSTS

The Irish Hotels Federation (IHF) has welcomed the publication today of the Civil Liability and Courts Bill 2004 by Minister for Justice, Michael McDowell. The IHF suggests that the substantial penalties for the making of fraudulent and exaggerated claims, put in place by this legislation, and the bringing forward of a more equitable method for the lodging and processing of genuine claims, must result in a reduction of the cost of settling those genuine claims and a major reduction in insurance premiums.

John Power, Chief Executive, IHF comments, "The hotel and guesthouse sector had been vulnerable in recent years to unsustainable increases in insurance costs. I am very encouraged by Minister McDowell's positive action in this area. There are a number of measures in this new legislation, which, in conjunction with the provisions of the Personal Injuries Assessment Board (PIAB), together with the vigilance on insurance costs maintained by the Joint Oireachtas Committee on Enterprise and Small Business chaired by Mr Donie Cassidy, TD, should reduce the insurance premiums in this country to a level comparable with other EU countries."

The Bill provides for the reduction of the limitation period for personal injuries actions from three years to one year, ensuring that claims are brought forward without undue delay. Mediation conferences, chaired by an independent chairperson, are intended to assist parties in reaching settlement of actions, without incurring the costs of a full trial. The Bill also requires evidence to be backed up by a sworn affidavit so that people who make false and exaggerated claims will have committed an offence and can be jailed or fined under the new law.

"I hope that the prospect of a potential jail term or hefty fine will act as a sufficient deterrent to those who are apt to fiddle the system for personal gain. False insurance claims, together with the cost associated with their settlement, have played a major role in driving up the average insurance premium in the hotel sector by as much as 351% from 2000 to 2003. I hope that this new legislation together with the recently established Personal Injuries Assessment Board will immediately result in a reduction in insurance premiums. I congratulate the Government's commitment to effectively addressing this major burden for Irish industry," Mr Power concluded.

FOR FURTHER INFORMATION:
Siobhan Molloy/Niamh Boylan Tel: (01) 676 01 68
Weber Shandwick FCC (086) 817 50 66 or (086) 3809191