Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

In the first half of 2023, damage claims took 0.4 years to settle, compared to 3.2 years for injures. Alamy Stock Photo

Motor insurance costs rise slightly in first half of 2023, as damage claim costs soar

The Alliance for Insurance Reform also remarked that the figures ‘the only ones that benefit from settling though litigation are the legal profession’.

MOTOR INSURANCE PREMIUMS were largely unchanged in the first half of 2023 despite soaring claims costs.

There was a 0.5% increase to €561 in the first half of 2023 when compared to the year previous, and there has been a decreasing trend since the second half of 2017 when the average premium was €730.

This is against an increase of close to 20% in settled claim costs across the industry to €358 million in the first half of 2023, when compared to the 2015-2019 half year average.

Over the same period, there’s been a 21% decrease in injury claim costs but a 126% increase in damage claim costs.

However, in the first half of 2023, damage claims took 0.4 years to settle, compared to 3.2 years for injuries.

This means it will take longer for trends in injury claims settlements to emerge when compared to damage claims.

The report also highlights the impact of the personal injury guidelines introduced in 2021 on claims settled through the Injuries Resolution Board (IRB), formerly known as the Personal Injuries Assessment Board.

Throughout 2015-2019, the average compensation paid to a claimant for claims less than €100,000 stood at €22,026, but in the first half of 2023, this dropped to €16,361.

The average compensation when going the litigation route for claims less than €100,000 was €24,037 over the period from 2015-2019, but this dropped to €20,453 in the first half of 2023.

However, the legal costs associated with both are starkly different.

The legal costs associated with the IRB route is €564, compared to €17,837 for the litigation route.

The Alliance for Insurance Reform said this shows that “the only ones that benefit from settling though the litigation channel are the legal profession”.

While Brian Hanley, chief executive of the Alliance for Insurance Reform, noted that some cases dealt with through litigation may be “contentious” and require “additional expertise”, he added that “it’s highly unlikely a majority of them fell within this bracket”.

There is also a significant time gap in settling claims – the average time taken to settle claims through the IRB was 2.7 years, compared to 5.2 years for claims settling through litigation.

Hanley said claims process through the “injuries assessment board rather than litigation is quicker, more efficient, and ultimately the awards are on average coming out just about the same”.

He added that competition in the insurance market is resulting in the slight increase in motor insurance when compared to rising damage claims.

Hanley also noted that rising damage claims are partly “due to inflation in terms of the cost of labour and the cost of repairs”.

Meanwhile, Insurance Ireland said the “sharp increase in damage claim costs and the continued pattern of claims going the litigated route” is a “worrying trend”.

Insurance Ireland CEO Moyagh Murdock said “successive reports have shown that the litigated channels still account for the vast majority of claims costs”.

She said this is “despite the fact that litigation is slower and doesn’t actually deliver better outcomes for claimants, with most of the additional cost going to legal fees”.

She added that this “highlights that the strengthened role of the Injuries Resolution Board to increase settlements through mediation and without unnecessary litigation is critically important”.

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
44 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute Toon Army
    Favourite Toon Army
    Report
    Jul 21st 2018, 7:42 AM

    Well at least the gangs can read about what the gardai intelligence is and what they believe the gangs next steps will be. Maybe the Journal could also provide a map detailing where exactly the new check points will be?

    230
    Install the app to use these features.
    Mute ParSim
    Favourite ParSim
    Report
    Jul 21st 2018, 9:01 AM

    @Toon Army: Do you think the gangs don’t know this already?

    59
    Install the app to use these features.
    Mute DaisyMay
    Favourite DaisyMay
    Report
    Jul 21st 2018, 6:45 AM

    The cost of policing these gangs must be extraordinary. We need to decriminalize drug users and slap a mandatory twenty years on drug sellers

    160
    Install the app to use these features.
    Mute Nameless and shameless
    Favourite Nameless and shameless
    Report
    Jul 21st 2018, 6:50 AM

    @DaisyMay: I know but these drug dealers had a rough up bringing and they won’t get the tender love and care they are entitled to in prison. With the right programmes they can become outstanding members of a community.

    145
    Install the app to use these features.
    Mute DaisyMay
    Favourite DaisyMay
    Report
    Jul 21st 2018, 6:55 AM

    @Nameless and shameless: maybe some hard labor and forced education might help

    73
    See 5 more replies ▾
    Install the app to use these features.
    Mute john doe
    Favourite john doe
    Report
    Jul 21st 2018, 9:14 AM

    @DaisyMay: how would your suggestion reduce the cost of policing these criminals? The only way to do that is legalisation and regulation.

    Decriminalisation would only reduce the cost of policing users, which in itself would also be worthwhile.

    For what it’s worth neither MDMA or ketamine are very harmful in their pure form. The problem is these gangsters cutting them with god knows what to increase their profits. Again regulation would solve that greatly reducing potential for harms to the public who use these drugs.

    19
    Install the app to use these features.
    Mute Gareth Cooney
    Favourite Gareth Cooney
    Report
    Jul 21st 2018, 10:14 AM

    @DaisyMay: How does that work? Legal to buy but illegal to sell?
    The cost of policing the scangers remains the same in face of drugs are legal to take then they become more in demand by 1.5 times.

    4
    Install the app to use these features.
    Mute Ronan O' Grady
    Favourite Ronan O' Grady
    Report
    Jul 21st 2018, 1:20 PM

    @Nameless and shameless: thats absolutely hilarious

    3
    Install the app to use these features.
    Mute Gus Sheridan
    Favourite Gus Sheridan
    Report
    Jul 21st 2018, 2:47 PM

    @Nameless and shameless: in that case execute them, problem solved

    1
    Install the app to use these features.
    Mute Karl
    Favourite Karl
    Report
    Jul 22nd 2018, 11:30 AM

    @DaisyMay: how would that change anything other than increase their customer base?

    1
    Install the app to use these features.
    Mute Joe Jackson
    Favourite Joe Jackson
    Report
    Jul 21st 2018, 8:22 AM

    Let them at it… Natural cull

    49
    Install the app to use these features.
    Mute Noel_Random
    Favourite Noel_Random
    Report
    Jul 21st 2018, 6:57 AM

    Oh my goodness. But is it a north Dublin or a south Dublin issue? I can’t quite tell from the document above. (Obviously, there’s no east or west in Dublin.)

    28
    Install the app to use these features.
    Mute DaisyMay
    Favourite DaisyMay
    Report
    Jul 21st 2018, 7:10 AM

    @Noel_Random: it’s a north Dublin issue. What an odd comment. Where would you say finglas, coolock and ballymun are?

    97
    Install the app to use these features.
    Mute SC
    Favourite SC
    Report
    Jul 21st 2018, 8:57 AM

    It seems like the Gardai know who all the criminals are. Why don’t they put them on trial? They’re harming their own community.

    23
    Install the app to use these features.
    Mute john doe
    Favourite john doe
    Report
    Jul 21st 2018, 9:18 AM

    @SC: put them on trial with no proof would be a waste of money. The gards seem like they know but They only report what they are told and it can be considerably wrong.

    People selling booze and taking bets in bookies are also potentially harming the community, should they go on trial too?

    13
    Install the app to use these features.
    Mute Ronan O' Grady
    Favourite Ronan O' Grady
    Report
    Jul 21st 2018, 1:24 PM

    @SC: evidence and proof.. with the help of people to stand up in court and say ” it was him” hard thing to do…The Guards must be so frustrated… Their doing a great job while under resourced.

    8
    Install the app to use these features.
    Mute Martin Lintzgy
    Favourite Martin Lintzgy
    Report
    Jul 21st 2018, 9:27 AM

    Its such a pity that crimanls are not locked up. Inteead, Tthey are free to go about thier nefarious buisness. If they are ccaught, there is always the broken home sob story, (no doubt perpetuated on their own kids), so snowflake sentencing.
    Tthe me, the purpose locking up these lowlifes is not too punish then, not to edducate and rehabilitate them…
    It it to protect honest hard working people.

    23
    Install the app to use these features.
    Mute matt curran
    Favourite matt curran
    Report
    Jul 21st 2018, 11:48 AM

    Whats the big problem …just let them at it, one way to get rid of them….

    11
    Install the app to use these features.
    Mute John Ryan
    Favourite John Ryan
    Report
    Jul 21st 2018, 11:39 AM

    Can’t the same laws used to tackle terrorism be used against the gangs mainly having them declared illegal organizations with membership carrying long prison sentences.

    7
    Install the app to use these features.
    Mute GerryCummins
    Favourite GerryCummins
    Report
    Jul 21st 2018, 9:46 PM

    Conscription! dont do school/college..straight to the Army/Navy/Aer Corp. That would sort a few of them !

    6
    Install the app to use these features.
    Mute Karl
    Favourite Karl
    Report
    Jul 22nd 2018, 11:32 AM

    @GerryCummins: yep, really looking forward to all those new criminals getting professional military training.

    3
    Install the app to use these features.
    Mute Seamus Mac
    Favourite Seamus Mac
    Report
    Jul 22nd 2018, 1:36 PM

    These guys get the best police protection in the state. The amount of resources & overtime put into this is absolutely ridiculous.

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel

 
JournalTv
News in 60 seconds