A chara, – We appear to be on the precipice of yet another protracted introspective investigation into the insurance industry to address the exponential increases in insurance premiums in recent years. Instead of what will more than likely be a costly and fruitless exercise for the Irish people, we need a radical overhaul of the system of car insurance in this country as well as the treatment of the victims of road-traffic incidents.
In Ireland, we are required by law to hold a minimum of third-party insurance. This is sensible. It protects the driving public from the potential excesses of damage to their car by a third party. It also provides compensation to the victims of road traffic accidents through the Personal Injuries Assessment Board or the courts. The insurance industry claims the increase in compensation claims has contributed to the increase in insurance premiums, despite the data not necessarily bearing this out.
In the state of Victoria, Australia, compulsory third-party insurance is levied on drivers through their annual vehicle registration tax, which is the equivalent of our motor tax. This funds the Victorian Transport Accident Commission, which comprehensively promotes road safety and provides gilt-edged medical and support services to the victims of road traffic accidents to help them get their lives back on track.
It is a “no fault” scheme that does not require arbitration, lawyers or approval from the transport accident commission’s administration, thus dramatically reducing its administration costs.
The average annual registration fee in Victoria equates to about €500. Meanwhile, motor tax in Ireland ranges from €199 to €1,809, while third-party insurance can cost anywhere from €300 to €1,500.
Ireland should learn from the Australian example and tailor it to suit the needs of our own citizens. If we currently oblige all drivers to purchase third-party insurance, why do we not tender this as a singular contract to the insurance provider who provides the most competitive bid?
The list of benefits of pursuing such a policy would be long. First, victims of road traffic accidents would be guaranteed the care and attention they need for as long as they need to recover through a suite of comprehensive healthcare services rather than an arbitrary and often insufficient compensation fee which puts the victim in charge of their own care. In addition, huge efficiencies could be achieved through building an economy of scale across the country and cutting out the need for legal intervention. In a similar way to health insurance, the effective “community rating” would also drive down premiums for all motorists and ensure all motorists were covered by the scheme. Finally, the whole process from tendering to administration would be transparent and accountable to the public through the Oireachtas and the Comptroller & Auditor General.
Radical action and bold leadership are required here to serve the interests of the Irish people over those of private capital. I only hope our Government will answer the call. – Is mise,
DAVID TRAYNOR,
Ranelagh, Dublin 6.