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8 in 10 of Irish public want to see compensation pay-outs slashed

Written by Robert McHugh, on 21st Dec 2020. Posted in Financial

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A consumer survey which was carried out by IReach and commissioned by CFM Group has found that 4 in 10 of the 1,000 respondents are confident they know someone who has made a false or exaggerated claim in the past.

The survey indicates a landslide of support amongst the Irish public for a major overall in the way insurance compensation claims are assessed in our courts system, with 8 in 10 survey respondents favouring a marked reduction in the amounts awarded.

The CFM Group Compo Survey revealed:
• Women are more in favour of capping compensation payments – 85% vs 76% of men
• Older people are much more likely to favour a cap on compensation – 91% of those over 55 feel this way, compared to 60% of those in the 18-24 age bracket
• People in Connacht/Ulster are more likely to be in favour of a cap 86%, compared to 76% of people in Dublin
• More men say that they know for sure that someone has made a false claim – 23% vs 16% of women
• Those in the 18 – 24 age bracket are far more likely to say they know someone who has made a claim that wasn’t wholly truthful – 63% compared to the national average of 40%

CFM Group contend that insurance claimants who are back playing 5-a-side or running 10km runs just 2/3 weeks following injuries should be paid “proportionate” levels of compensation – specifically, just enough to cover any medical costs & loss of earnings – but no more.

Furthermore, CFM Group have responded to the Government’s recent publication on insurance reform saying that while the Government’s lack of decisive action around capping pay-outs is disappointing, the pledge to introduce a new statutory offence of perjury is to be welcomed – but only if follow through action is taken.

Commenting on the survey, Managing Director of CFM Group, Jonathan Hehir said, "This survey gives weight to our calls, as the vast majority of people want to see changes. The crux of the matter is, the higher the cost of claims, the higher the premium the business or employer is charged. For a long time now, we have been calling for a complete review of the Book of Quantum and while the Government plans to replace it with new guidelines on the “appropriate” level of personal injury awards, there is no specific commitment to reduce the award amounts."

He added, "This is disappointing as this inaction does nothing to address the soaring, and often prohibitively expensive, public and employer liability insurance premiums Irish businesses are facing into every year."

Source: www.businessworld.ie

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