Harney plan to reduce costs of cover

An action plan on insurance to be presented to the Government over the coming weeks sets out a 12- to 18-month schedule for driving down insurance premiums.

The scheme involves the introduction of 67 recommendations, which were contained in the report of the Motor Insurance Advisory Body and sets out the expected drop in insurance premiums, which is expected to arise from each change.

The plan will be presented to the Government by the Tánaiste and Minister for Enterprise, Trade and Employment, Ms Harney, and will involve a range of Departments, including the Department of Justice, Equality and Law Reform, the Department of Transport and the Department of Health and Children.

Ms Harney, in an address to the annual conference of the Insurance Institute of Ireland, said she knew the industry was facing difficulties but warned that its response to the action plan would be watched closely. "The acid test will be the impact felt in the consumer's pocket."

She said the price of insurance was a major difficulty facing householders, motorists and business people and tackling the problem "face on" would be her main political priority over the coming year to 18 months.

She said jobs were being lost because of insurance costs and because some firms were unable to get insurance cover. She is to set up an interim Personal Injuries Assessment Board next month so that the statutory one, when established, can "hit the ground running". The board is to assess the size of personal injury claims outside the courts process and to reduce the legal fees.