Madam, - Mike Kemp of the Irish Insurance Federation (December 20th) has called for a debate on the level of insurance awards.
We agree that there should be a debate on this issue. But such debate should also focus on the high premiums which the insurance industry continue to charge even though the Government has done everything the industry asked for.
There is also a need to examine the "super-profits" earned by the insurance industry at a time when it was blaming high premiums on everything from the bad stock market to the legal profession. The debate should also examine the Personal Injuries Assessment Board and the extra costs entailed in establishing, staffing and funding it.
There should be a debate on the attempt by the insurance industry to cap its liability in cases of serious road traffic accidents.
Questions need to be asked about the power to cap the insurance industry's payments and the fact that the insurance federation believes that this will have "no practical effect on the level of claims payments to the victims of road traffic accidents".
We note that the insurers have suggested a minimum figure of €40 million. However figures of €10 million, €20 million and in excess of €100 million have all been referred to. Which is it?
In reality, any cap on the liability of an insurance company to make a payment on foot of a compensation award will cause significant hardship not only to the potential seriously injured persons, but also to the customers of the insurance industry themselves who will find they will have a personal liability in excess of the "cap".
The Irish Insurance Federation has called for the debate, so let it be an all encompassing debate, dealing not just with those matters that are self-serving from its perspective, but with every material issue relevant to consumers, their costs and compensation. - Yours, etc.,
JERRY CARROLL, Director, The Bar Council, Law Library, Dublin 7.