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86% of Irish people disagree with motor insurance claims pay-outs

Written by Robert McHugh, on 21st Jun 2017. Posted in Financial

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The Irish Brokers Association (IBA) has today released a survey of 1000 adults throughout the country which examines consumer views on car insurance. 
 
The survey found that while Ireland is one of the worst offenders in Europe for above average pay-outs when it comes to motor insurance claims, 66% of the general public (or 86% of those who expressed an opinion) are not in favour of the practice, believing that car insurance pay outs should not be bigger than those paid out in other countries.
 
The report finds that Ireland is the "whiplash capital" of Europe with whiplash accounting for 80% of motor insurance claims versus just 3% in France. The average whiplash award in Ireland of €15k is 3 times higher than the UK and 5 times higher than that in Italy and Spain.
 
The Irish Brokers Association survey asked participants for their opinion on the following statement: “The average amount paid out for whiplash in a motor insurance claim in Ireland is €15,000 – almost 3 times higher than that paid out in the UK and higher than most European countries”

· 9% said it was ‘About right’                                                                         
· 2% said ‘We should pay more than other countries’                                        
· 66% believe ‘We should not pay more than other countries’                                      
· 23% responded ‘Don’t know’ 
 
Commenting on the findings, CEO of the Irish Brokers Association, Ciaran Phelan said, "Our survey demonstrates public sentiment on the issue.  People want the value of awards to come down because they believe that this would have a positive impact on reducing the cost of motor insurance – an issue that almost every motorist in the country is currently battling."

He added, "During his tenure as junior Minister for Financial Services, Eoghan Murphy did some good work on investigating the causes of motor insurance premium increases and we hope, in the wake of the latest cabinet reshuffle, that no impetus or momentum will be lost and that Pascal Donohoe, our Minister for the newly amalgamated Finance, Public Expenditure and Reform, will continue to work on the recommendations outlined in the report."
 
Source: www.businessworld.ie 

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