Sir, – The insurance industry reform proposals by Patrick Honohan, then Central Bank governor, to the Minister for Finance last year, deserves consideration and examination.
A system of no-fault compensation is appropriate in all types of claims particularly medical negligence and personal injuries.
The cost in psychological, emotional and financial terms under the present system is high and unfair on those who suffer injury and deserve to be compensated.
The insurance industry has too much influence on Government to the detriment of the State and its citizens. That industry is constantly blaming third parties for its apparent inability to run its own affairs properly.
In more than 40 years of legal practice I have witnessed those in State and insurance company claims departments operating an inefficient and self-serving system that adds significantly to the cost of claims and of doing business in this country.
How many insurers have failed in this country over the past four decades and were then bailed out by the State through the imposition of a levy on the hard-pressed insured motorists and others?
Such failures were the result of inefficiency and poor management of insurance companies.
It is time that insurers were called to account and their practices fully examined.
– Yours, etc,
PATRICK O’CONNOR,
Swinford,
Co Mayo.