A PLAN to increase compensation payouts will close businesses, a Senator has warned.
The Judicial Council’s larger payouts for injury awards is being looked at by the Justice Minister Jim O’Callaghan.
Senators Linda Nelson Murray[/caption]
This is despite the impact it could have on firms already wrestling high running costs.
Fine Gael Senator Linda Nelson Murray, who runs Huckleberry Den play centre in Navan, Co Meath, says larger payouts will force some companies to close and is urging the Minister not to bite.
The Senator predicts that raising the level of payouts by the recommended 16.7 per cent will result in premiums rising for employers — and could force some to close their firms down altogether.
Cllr Nelson Murray said: “There is a proposal on a Minister’s desk to raise the injury awards which I have no doubt will further increase premiums — which could result in the loss of jobs and businesses closing.
“This isn’t an idle threat. It’s a real example as we saw so many businesses close — particularly in the leisure sector — only a few years ago.
“These increases could also reduce the volume of cases settled at the Injuries Resolution Board, which will lead to substantial increases in litigation expenses.
“The previous government did so much on the programme for insurance reform.
“It would be wrong to see all that work unfold, which will happen if these awards go ahead.”
While the Programme for Government commits to driving down insurance costs for households, drivers and firms, Cllr Nelson Murray believes that taking up this recommendation from the Judicial Council will do the exact opposite.
She added: “I am asking the Minister to meet with and listen to policy holders, as these are the people who will ultimately pay the price.
“Right now, businesses are faced with a myriad of increased costs and we can’t add more fuel to the fire by doing something that will drive premiums up.
“I fully support anyone who has suffered a severe injury being fully compensated and taken care of.
“But we need to examine the lower end of the market — the smaller claims.”
