A FIANNA Fail frontbencher urged the Government to consider capping insurance awards to keep down premiums. "The cost of insurance in this country, is a scandal," said Mr Willie O'Dea (Limerick East) in an adjournment debate.

Personal injury settlements in 1994 cost £410 million, probably more than the expected total payout to hepatitis C victims. The recent Deloitte-Touche report on insurance estimated that costs and premiums here were higher than elsewhere in Europe. Claims were on average four times higher than in the UK.

"Any attempt to reduce the cost of insurance must focus on the level of awards," said Mr O'Dea. The Government had apparently decided to accept the proposals in the Deloitte-Touche report, which rejected the idea of capping awards. "In my view, this will not work."

The Minister of State for Commerce, Mr Pat Rabbitte, said the recent increase in motor insurance costs applied only to the Guardian PMPA Group which had increased premiums by 5 per cent on average with effect from November 1st. He was not aware of any other similar increases.

The industry consistently said the major factor driving up the cost of claims was a rise in accidents as a result of careless or drunken driving, and, more recently, excessive speed. He was having the industry's contention examined. If it was true, then insurance costs would continue to remain high until there was an abatement of accidents and mishaps on the roads.

Steps were being taken, including the introduction of on-the-spot fines for speeding.

Referring to his proposal to set up a personal injuries tribunal, he said the objective was to create the most efficient, prompt, lowest cost and fair system for coping with injuries.