The Gazette 1993

GAZETTE

OCTOBER 1993

V I E W P 0 I NIT

Unjust, Unworkable and Unconstitutional

I A cause and effect link between levels of compensation and the high levels of insurance in this country has been presumed by Minister Brennan. According to the Davies Arnold Cooper Report, however, countries such as France, Germany and the Netherlands have higher general levels of compensation for the most serious categories of injury yet, in those countries, motor insurance levels are much lower than in Ireland. How does the Minister explain this? Moreover, it is clear from a comparison between the levels of compensation in England and here that one of the main reasons for the difference - which is not all that significant - is that Irish courts use actuaries for calculating future losses (in relation to life expectancy) whereas, in England, this function is performed by the judges themselves. A close reading of the Davies Arnold Cooper Report will show that the multiplier used for future life expectancy is significantly higher in Ireland than in England - for example, in the case of serious brain damage to a woman aged 20, the multiplier used in England was 15 years whereas, for the corresponding injury in Ireland, the multiplier was 23 years. This is a very significant factor which accounts for a large part of the disparity between English and Irish levels of damages. It seems hardly necessary for us to ask which of the two approaches is the fairer. The Law Society paper made some good suggestions as to how the high level of insurance should be tackled in this country. There is a clear need to establish why fatalities and serious injuries are higher here than in the UK despite the lower accident rate. The level of uninsured driving needs also to be tackled. The Society also made some strong points about the American experience in this general area. In many of the States across the US, attempts to introduce caps on levels of damages were held to be unconstitutional and,

even in those States where such 'reforms' were implemented, there is no evidence that there has been any reduction in insurance costs. If this debate is to continue - we would hope that in the general public interest the Minister will now drop his proposals - Minister Brennan must do more than simply advert to what he believes to be 'EC norms'. He must answer the paper put to him by the Law Society. We await his response • A copy of the press statement and summary of the Society's submission to government, or a copy of the full text of the submission, is available to practit- ioners on request to Mary Kinsella at the Law Society. Tel. 01-6710711.

| What is the proper level of compensation to be paid to an accident victim who suffers serious personal injuries? That is an issue that may well arise for debate in this country in the near future. The Minister of State with responsibility for Commerce and Technology, Seamus Brennan TD, thinks that Irish courts pay too much - especially for non-pecuniary loss, usually referred to as 'pain and suffering'. Minister Brennan's concern is with the high cost of insurance, particularly motor insurance, in this country. He has come to the conclusion that the level of damages paid in accident cases is the principal 'bugbear' and, if we could reduce the payouts of insurance companies, by reducing compensation levels, all would be well and insurance levels would come down. The Law Society recently responded to Mr. Brennan's proposals with a | detailed, well-argued paper which | suggested that he was wrong on all counts. The paper suggested that the Davies Arnold Cooper Report, upon which Mr. Brennan appears to be basing his policy, was an unreliable study; that Irish levels of damages were fair and that, even if compensation levels were reduced, Minister Brennan could not guarantee any corresponding reduction in insurance premiums. The paper fired a strong warning shot at the Minister that

NORTHERN IRELAND AGENT * Legal work undertaken on an agency basis * All communications to clients through instructing Solicitors * Consultants in Dublin if required Contact: Seamus Connolly, Moran and Ryan, Solicitors

Arran House, 35 Amn Quay,

Bank Building,

Hill Street,

Dublin 7.

Newry, Co. Down. Tel: (080693) 65311 Fax: (080693) 62096

Tel:(01) 8725622 Fax: (01) 8725404

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N I

a proposal to determine levels of compensation by statute could be unconstitutional.

Established scientists, experienced in all areas of forensic document examination Quick response Competitive rates Contact: Mike HaU DOCUMENT EVIDENCE Gatsby Court 172 Holliday St. Birmingham B1 11]

In our view, Minister Brennan owes the Irish public some explanations. He

must, at a minimum, justify his contention that Irish levels of

compensation are too high and he must also, in our view, show clearly how, if they are reduced, he proposes to | guarantee a reduction in insurance I levels.

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