‘Excessive’ compensation levels to be debated
THE higher cost of car insurance locally is to be brought to the floor of the assembly later on Monday.
DUP MLAs Adrian McQuillan and Gregory Campbell are calling on Justice Minister David Ford to intervene to ensure that the payment of compensation claims is capped.
The Stormont debate comes after it was reported yesterday that a summit of top cabinet ministers are to discuss ways to slash the number of whiplash claims forcing up car insurance premiums in Britain.
Transport Secretary Justine Greening, Health Secretary Andrew Lansley, Justice Secretary Ken Clarke, Home Secretary Theresa May and Business Secretary Vince Cable will meet to discuss the situation. Prime Minister David Cameron is later expected to convene a wider review on the issue.
However, the scale costs of the compensation system locally are substantially higher than they are in England and Wales.
Compensation for a severe whiplash injury can be between £17,000 and £35,000 in Northern Ireland – but across the water it is much lower, varying between £7,000 and £13,000.
According to the Office of Fair Trading, the average Ulster driver currently pays over 10 per cent more than their British counterparts for their car insurance.
Antoinette McKeown, chief executive of the Consumer Council, said: “The Department of Justice must examine the legal system with regard to the cost of claims and compensation levels and take action as a matter of urgency.”
And writing in Saturday’s News Letter, Mr McQuillan urged Mr Ford to institute an urgent review of levels of compensation payable, particularly for minor whiplash claims, and to bring them into line with similar awards in England and Wales.
Pointing to the “claims culture” in our society, Mr McQuillan said: “We all know of situations where very minor vehicle contact has led to multiple and excessive claims for personal injury.
“The minister needs to give judges the tools to dismiss these minor personal injury actions.”
The East Londonderry representative also maintained local cases should be held in lower courts.
“In England and Wales, road traffic accidents can be heard at the small claims court, significantly reducing legal costs. The minister should urgently make the necessary changes in the structure of the county court to bring in the same provisions here.”
A Department of Justice spokesperson said: “The minister welcomes the opportunity to debate this issue on the floor of the Assembly but will not be commenting in advance of the debate.”
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Tuesday 29 May 2012
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