Compo culture

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It is becoming increasingly apparent, from the examples in this thread, that if insurance companies were to actually challenge the veracity of bogus claims that the probability of having claims reduced or thrown out altogether is reasonably good.
Some investment in investigation and legal challenges will act as a great deterrent to bogus claims in the first place.
Its the high probability of insurance companies settling before a trial that is encouraging bogus claims, driving up premiums, increasing profits.
 
WolfeTone said:
Its the high probability of insurance companies settling before a trial that is encouraging bogus claims, driving up premiums, increasing profits.
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That and dishonest people with no integrity or self respect. Don't forget about them.
 
Purple said:
That and dishonest people with no integrity or self respect. Don't forget about them.
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Of course, but there are always people trying to scam systems. Be it insurance fraud, tax evasion, over-charging, price-fixing, etc.
So if the system is being exploited and abused, then implement a system that deters such abuses.
That could be in the way of legislative reform. Also, reading through the examples on this thread, it could also be by way of the insurance industry itself and how it is managing its own affairs.
Higher premiums can generate higher profits.
Between the legal profession and insurance industry there is more than a whiff of system exploitation going on here from both parties.
 
Mother told to pay costs after losing case over toy rattle

Mother told to pay costs after losing case over toy rattle

A 21-year-old mother who claimed she was defamed when shop staff accused her of stealing a toy rattle for her one-year-old child has been ordered to pay the legal costs of an unsuccessful claim against the shop and its security firm.
www.independent.ie

"Naomi Sunner's €75,000 defamation claim against Dealz Retailing Ireland was thrown out by Judge Jacqueline Linnane in the Circuit Civil Court yesterday.

A 21-year-old mother who claimed she was defamed when shop staff accused her of stealing a toy rattle for her one-year-old child has been ordered to pay the legal costs of an unsuccessful claim against the shop and its security firm."

75 grand! How long would it take you to save 75 grand?

We don't know whether she can or will pay Dealz the costs she has been ordered to pay. If she doesn't this is a case of Heads I win, Tails you lose for Dealz. Clearly no disincentive for people to make such claims.


"The judge ... said people should stop running to their solicitors."

We need more judges like this!
 

In the short term no help to Dealz. But in the long run the more decisions like this there are, the more selective solicitors will be on what cases they are taking up. Her solicitor in this case would not have recouped any of their expenses.
 
Firefly said:
We need more judges like this!
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Arguably, there are plenty of judges like this. What we need is insurance companies to contest more claims rather than settling for huge sums before the case goes to trial.
Even if the insurance company were to lose many cases, mitigating circumstances can always be offered and in turn greatly reducing awards claimed for.
 
Chief Justice puts Junior Minister back in his box...

The gist of the article is that the minister has been going around saying the committee will do X, Y and Z and the head of the committee says we haven't even met yet, we don't know what we're going to do so if you're going around promising anything stop...

The country’s most senior judge has warned politicians seeking to influence the work of a judicial committee on personal injury awards to back off.
Chief Justice Frank Clarke said the long-awaited committee would be totally independent and would decide itself how it goes about its work.
His comments came in a statement announcing the make-up of the committee, which is expected to recalibrate personal injury payout guidelines.
Although he did not name any politician, his remarks are being seen as a rebuke of Junior Finance Minister Michael D’Arcy, who has been under considerable pressure from the business sector over high insurance costs.
The Fine Gael TD said last week that the book of quantum on the top five personal injury claims would be significantly reduced early next year.

Chief Justice Frank Clarke clashes with minister over injury awards committee - Independent.ie

The country’s most senior judge has warned politicians seeking to influence the work of a judicial committee on personal injury awards to back off.
www.independent.ie
 
Some developments being reported by Charlie Weston. The focus clearly on the insurance industry itself and how it operates.
The recalibration of award levels, being discussed by judges, is expected to reduce the level of awards approved by courts.

Insurers will be required to provide details of the claims they pay out on and premiums paid by policyholders.
This is a bugbear of mine. When reports of outlandish amounts are settled, it is invariably reported as the courts making the awards, when in reality the courts are merely approving what the insurance company has agreed to settle on.
If policyholders can see which companies are settling for large awards it may act as a competitive spur to begin contesting claims.
 
A man who claimed he could no longer carry out manual labour and was unable to raise his arm above his head without pain after his car was rear-ended had his case for damages thrown out when the judge was shown Facebook pictures of the plaintiff participating in a 10km obstacle course.

Man suing for injuries has case thrown out after taking part in 10km obstacle course

The judge was shown Facebook pictures of the plaintiff participating in a 10km obstacle course, and threw out the case.
www.irishexaminer.com

Must be the insurance company's fault..
 
Firefly said:
Must be the insurance company's fault..
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So the insurance company investigated the claim?
Then challenged it in court?
And put in front of a judge, the judge threw out the claim?

The insurance company didn't just settle for an extortionate amount seeking the courts approval, in turn, jacking up premiums on businesses and working people?

I can see a positive here.
 
peemac said:
Most in the legal and medical profession are honest, but just like the gardai, there are far too many bad apples
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Just like every other member of society. Doctors and Lawyers are no more or less honest than anyone else. It is when they start believing that they are better that the problems arise.
I've always said that a plumber working in a house with small children in it, or a childcare assistant in a cheche, is occupying a position of trust far greater than a lawyer or doctor.
 
New laws to crack down on 'compo culture' by jailing people who lie under oath for up to 10 years could be passed by TDs within days.
The Government is moving to fast-track legislation that will seek to put the offence of perjury on a statutory footing for the first time.

Insurance scammers facing 10 years in jail for perjury - Independent.ie

New laws to crack down on 'compo culture' by jailing people who lie under oath for up to 10 years could be passed by TDs within days.
www.independent.ie
 
Im not sure about anyone else, but it is obvious to me that if insurance companies invest some time and effort challenging claims they can avoid extortionate damages payouts.
 
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