Tomorrow the Finance Committee will undertake detailed pre-legislative scrutiny of Sinn Féin spokesperson on Finance Pearse Doherty TD’s Judicial Council (Amendment) Bill.
The legislation would require the insurance industry to provide information to the Central Bank outlining how the cost of claims have reduced as a result of the new Personal Injuries Guidelines.
It would also require them to show how they have passed those savings to their customers, euro for euro, for each of the next four years.
Speaking today, Teachta Doherty said:
“Tomorrow the Finance Committee will begin scrutiny of my legislation to hold the insurance industry to account and ensure they are passing on savings to their customers.
“The Personal Injuries Guidelines have been in place for more than a year now.
“They have reduced awards through the Personal Injuries Assessment Board (PIAB) by more than 40 percent since they took effect.
“These reductions result in big savings for insurance companies – savings that they are not passing onto their customers.
“My Bill would require the insurance industry to provide information to the Central Bank for each of the next four years outlining how the cost of claims have fallen as a result of the new Personal Injuries Guidelines, and if – and how – they have passed these savings on to their consumers in the form of reduced prices.
“The legislation requires the Central Bank to report this information to the Minister for Finance with a report brought before the Houses of the Oireachtas annually.
“That way, we can increase transparency and hold the industry to account.
“Similar regulations are in place in Britain following a reduction in the level of whiplash injury awards, where many insurers in this market, including AIG, AXA, Allianz, Aviva and RSA, also operate.
“They should be subject to no less scrutiny in Ireland.
“Tomorrow the Committee will hear from the Alliance for Insurance Reform and Insurance Ireland – and I hope we can progress this legislation to further protect consumers.”