Insurance reform 'subverted'

The Alliance for Insurance Reform (AIR) has accused the legal profession of trying to "subvert" the Government's insurance reform…

The Alliance for Insurance Reform (AIR) has accused the legal profession of trying to "subvert" the Government's insurance reform plans by spreading "disinformation" and raising bogus fears.

The chairman of the business lobby group, Mr Gerard McCaughey, said attempts to introduce a Personal Injuries Assessment Board (PIAB) had failed in the past, and would fail again if "vested interests" had their way.

Launching a series of billboard advertisements targeted against the insurance and legal industries, he said: "Some may feel that this campaign is not required as the legislation and PIAB are on the way, but that is far from the truth.

"No one should underestimate the power of the legal profession and their ability to thwart the wishes of our legislators."

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However, Mr Ken Murphy, the director general of the Law Society, described the claims as "the product of paranoia. If only the legal profession had the power Mr McCaughey thinks we have."

The AIR billboard campaign includes slogans urging drivers to hoot their horns if they believe "greedy solicitors" are putting up the cost of personal injury claims. A further advertisement, which is being deliberately placed near barristers' offices, asks: "Are you being scalped for a wig?"

Mr McCaughey said: "We don't want to be like the Irish rugby team last weekend, getting up to the line and failing to get across it. We are going to fight vigorously right up to the last second of play and we are absolutely on our guard."

He said he believed the legal profession was behind recent media reports claiming the PIAB could be derailed at Cabinet level because of its possible funding implications.

"Reform has been mooted since 1986. But every time it has been thwarted," Mr McCaughey added. "I would suggest to the Law Society to call the dogs off and let the Government get on with what the public wants, and what business wants, to make awards to legitimate claims at a lower legal cost. If it doesn't work out as planned then let the legal profession turn around and say 'we told you so'. But don't stop this coming into play."

Denying the allegations against the society, Mr Murphy said it had already concluded the Government would establish the board. All it had done was suggest improvements to the legislation, including a right to legal representation for claimants and the extension of sworn affidavits to defendants as well as plaintiffs. "One has to remember the business lobby is a vested interest too, and as far as I can see if the lobby says to the Government 'jump' the only response from the Government is 'how high'."

Motoring groups have launched the biggest concerted campaign to date against the high levels of tax imposed on motorists, writes Michael McAleer, Motoring Editor. Organised by the Consumers Association, the RAC and the Society of the Irish Motor Industry, the campaign aims to draw awareness to the fact that motorists contribute €3.7 billion a year to the Exchequer. It begins with a series of posters asking motorists: "Do you know that when you spend €21,000 on a new car, €8,000 is tax?" The group is calling on the Minister for Finance to reduce registration tax by 2.5 per cent and introduce a new scrappage scheme in the upcoming budget.

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column