26/03/2013

Personal Injury Claims Could Raise Driving Insurance Premiums

Consumers and businesses could face higher insurance premiums if the "emerging claims culture" is not addressed, the Injuries Board has said in it annual review.

Established in 2004, the board assess personal injury claims and makes awards relating to motor, employer and public liability accidents, without the need for lengthy and expensive litigation.

Their annual review found that compensation awards increased by 3.9% to €218m last year, with an overall increase of almost 25% since 2007.

Motor claims alone have jumped by over 33% in the last five years, the review showed.

The board is concerned that these increases can be tied to proliferation of promotion and advertising by claims handling companies.

"There has been a significant increase in claims promotion for personal injuries claims and in particular in the online space,” Injuries Board Chief Executive Patricia Byron told RTÉ’s Morning Ireland.

"Now there is a ban on advertising, it is illegal for solicitors to advertise for personal injury claims but what we see are claims companies emerging and sourcing this business.

"Now obviously they are sourcing it for somebody and these companies housed by solicitors who are not practising, or by lawyers who are not practising solicitors and claims handlers, these are not subject to that ban."

(H)


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