Progress in reducing insurance premiums still leaves much to be done

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According to the latest figures released by the Injury Assessment Board (PIAB), the enormous effort that has gone into establishing the Judicial Board and adopting guidelines on levels of compensation for bodily injury has been successful as far as the declining value of rewards for minor injuries is concerned. But achieving the ultimate goal of reducing insurance premiums was always going to require extra effort.

The vast majority of personal injury claims are settled between the claimant and the insurer rather than through PIAB or the courts.

Before the High Court during the week, Judge Michael Twomey noted that an “impecunious” person who files a personal injury claim with this court, rather than, say, the district court, is increasing the pressure on the court. insurance company to reach a settlement. , because even if the claimant loses, the insurer will find itself out of pocket because of the legal fees it incurred in responding to the claim.

The observation regarding legal costs generally applies, and without a doubt the costs of defending claims are one of the reasons why claims which might not go to court are nevertheless settled by insurance companies. .

More information about the size of claims made by insurers has been the subject of much comment following the PIAB report showing an average 40 percent drop in award values ​​as a result of the new guidelines.

Do insurance companies settle cases for higher values ​​than suggested by Judicial Council guidelines? If so, maybe we can find a way to fix this as well.

Meanwhile, auto insurance premiums are dropping, while public liability premiums, it seems, are still going in the wrong direction. This market is lacking in subscribers and is not functioning properly. Given the toxic effect of high premiums on such a wide range of societal activities, there is no choice but to continue the effort to address this crisis.


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