Ireland has the second lowest rate of workplace accidents in Europe, but the highest rate of claims, new figures compiled by the employers group, IBEC, have indicated. The group says more than 60 per cent of accidents in the workplace now result in claims.
The organisation has called on the Government to take urgent action to tackle the situation which, it says, is unsustainable. Action must include reducing the huge overheads associated with claims and introducing measures to stamp out spurious or false claims.
IBEC research found that Ireland's rate of accidents is just one quarter of the European average. Quoting European Community statistics (Eurostat), IBEC found that the average number of accidents in Europe is 4,505 per 100,000 people, while in Ireland it is 1,168 accidents per 100,000 people. Sweden has the lowest rate of accidents, while Portugal has the highest.
IBEC says that, compared with Britain, our nearest neighbour, we have a "staggering 44 per cent more workplace claims per capita". In all, 62 per cent of all accidents in the workplace results in an insurance claim.
IBEC says the estimated average claims cost in Ireland was found to be almost 2.5 time that in the UK. For employers who have to buy employee liability insurance, the cost of such insurance is three times higher than in Britain, twice that of similar insurance in Denmark and seven times the cost in the Netherlands.
Mr Tony Briscoe, head of IBEC's Health and Safety Unit, said last night that insurance companies have also become victims of the claims culture in Ireland. They had taken a very strong line on spurious claims. However, he said, the system in Ireland encourages spurious and exaggerated claims. The courts are also very generous in terms of awards, he said.
"Often people will go to see a solicitor before they go to see their doctor," he claimed. He added that it is often a feature of "injuries" that once a claim is settled, the person involved stops visiting their doctor.
Mr Briscoe said the Government's actions aimed at mitigating the developing situation in the defence forces regarding army deafness claims was welcome. He said IBEC has consistently argued for a new approach to the current cost of liability claims. He added that the latest figures indicated the importance of action in this area. "Business and industry is no less entitled than the taxpayer to a fair system of dealing with liability claims," he said.
Mr Briscoe said a new system is needed which will deal fairly with genuine cases of serious injury for those who are legally entitled to compensation. It must also reduce the overheads associated with claims. Mr Briscoe said the Deloitte & Touche report into the insurance industry, published in 1996, found that legal costs alone could range from 8 per cent of the amount involved in large claims to 50 per cent in small claims. Medical costs were also very high, he said.
He said a new system should recognise that many claimants were mature, responsible, adults and, where they have contributed to their injury, this should clearly be reflected in award decisions or the level of awards.
He said guidance should also be provided on award levels for general damages so that, when negligence is not at issue, the potential value of a claim can be reasonably ascertained.
