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Press Release - 13/July/2001

MIJAG Refute Insurance Industry Claims that Motor Insurance Must Increase in the Wake of the Supreme Court Ruling on Refunding Health Care Costs

 

Claims by the insurance industry that motor insurance will rise in the wake of the Supreme Court judgement on payouts to the health boards has been refuted by MIJAG, the Motor Insurance Justice Action Group. "£900 million is paid out in claims each year. The Government's Motor Insurance Advisory Board estimates that the legal profession get £40 out of every £100 paid or £360 million. The Health Boards will now be able to claim back £7.9 million or 2.2% of what the legal profession get. All of this money is paid out by people who receive claims and is not a direct cost to the insurance industry" said Mick Murphy the National Organiser of MIJAG.

On average 7,900 people are injured on the roads each year. An average hospital stay is 4 days. The judgement is for £250 per day. Therefore the total cost comes to £7.9 million. Insurance claimants had being paying £100 per day so the increase is £4.7 million. "This money is not paid by the industry and does not amount to another excuse to increase premiums" Mr Murphy added.

MIJAG is holding a meeting and sponsored drive in Cashel, County Tipperary this Sunday July 15th. MIJAG supporters from around the Country will meet in Kearnys Castle Hotel at 3pm. At 4.30pm there will be a protest car cavalcade on the Cork/Dublin road from Cashel to Urlingford and back.



MIJAG argues that young drivers should be charged the average premium of £480 starting off and this should increase only if safety related driving offences are committed. "This would give an enormous incentive to young drivers to continue good behaviour on the road and it gives the first time drive a chance" said Mr Murphy. MIJAG also believes driver training and education should be part of the school curriculum.

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