Alliance for Insurance Reform calls on govt to ensure assessment on legal costs is submitted
The Alliance for Insurance Reform has called on government to ensure the economic assessment on legal costs it commissioned from Indecon International Economic Consultants that was due for submission this time last year, is submitted to it without further delay.
Legal fees account for 33% of the total cost of litigated personal injury settlements in Ireland – a cost that goes directly to the cost of insurance.
Flora Crowe, Alliance Board member and grocery stores owner said: “Legal costs are a key contributor to the high insurance premiums people, small businesses and voluntary groups’ face. Daily we hear about events being cancelled or organisation’s growth stifled because of these costs.
“We welcomed the government’s decision to commission “An Economic Evaluation of Options to Control Litigation Costs” but cautioned that the time frame for its completion not be allowed to drift. Unfortunately, this is what has happened making it essential that the report is presented to government without any further delay.”
Crowe continued: “After the Indecon economic report is submitted a further legal analysis is required before draft proposals are even circulated. We note from the Justice Department that such an analysis is scheduled to take six months but given the interminable delays in addressing legal costs going back more than ten years to the time of the Troika members of the Alliance are deeply concerned that this will be put on the long finger again. We call on the Justice Minister to ensure the Government’s commitments in this area are honoured.”
Alliance Board Member and owner of Kidspace play centres in Rathfarnham and Rathcoole, Tracy Sheridan asked: “Who is this delay benefiting? It isn’t helping motorists and it certainly isn’t helping hard pressed businesses or voluntary groups.”
