Are motor insurance laws different in Ireland?

There aren't a massive amount of differences in motor insurance laws between the countries in the UK and Ireland. But, that doesn't mean that you can ignore the one or two differences there are. Between England and Ireland, the difference is in the amount of compensation that your insurance company can be liable for in Ireland. Not only can compensation be about 8 or 9 times in Ireland what it is in England, but legal fees and costs can be three to four times higher. So, Irish insurers face higher risks with their insurance policies than English companies do.

Before settlements occur, offers are made between the two insurance companies involved. In England, there are four offers made on average before settlement is reached. But in Ireland there are up to six offers on average. This statistic is made more emphatic by the fact that the first offer, or the starting point, in England is on average 89% of the final settlement, and the starting point for the plaintiff 117%. In Ireland the corresponding figures are 81% and 179%, so it is obvious why more offers are needed before settlement.

Thus, barristers in Ireland are used more often, and it is four times more likely that formal proceedings are commenced in Ireland than in England.

A survey was carried out of Irish and English insurance claims handlers. It was instructive in the way that it highlighted differences in how they dealt with the litigation and settlement process. A questionnaire was issued with three vignettes.

1. How much would you settle for if your insured collided with the rear of a plaintiff's vehicle, causing the plaintiff neck pains for the next 18 months?
2. If there is a 40% possibility the above plaintiff will suffer the pain for the rest of her life (she is 45), would you wait for a certain prognosis, settle reasonably or take another option, and what would your maximum settlement be?
3. If a witness insists the plaintiff reversed into your insured motor vehicle, would you settle, depending on the witness's certainty?

The idea with the survey is that No.1 sets the injury's value baseline, No. 2 brings the pain level into doubt, and No.3 adds uncertainty as to the case's merits.

The Irish claims handlers gave a number on average 4 times higher than the English claims handlers for No 1. The Irish claims handlers were also more likely to settle for No. 2 even though there was no medical certainty. Finally, with No.3, the Irish claims handlers were more likely to settle, whatever their witness's certainty. The reason for this is that they want to avoid the possible expense of going to court.

 

 

 

 

 

 

 

 

 

 

 

 

© AskFinancially.com 2008

Motor Insurance

Ask About

> Motor Insurance Advice.....
> What are the laws regarding motor insurance in the United Kingdom?
> What are the principles behind motor insurance?
> What types of motor insurance policy are available?
> What is third party only insurance?
> What is third party fire and theft motor insurance?
> What does a comprehensive motor insurance policy cover?
> What is excluded from comprehensive insurance policies?
> How do I claim?
> What to do if you have an accident?
> How do I claim if an accident causes damage to my car?
> How do I claim if the accident involves a third party?
> What do I need to do if using my motor vehicle abroad?
> How do I find the cheapest motor insurance premiums?
> How can I lower my motor insurance premiums?
> How are my insurance premiums affected by convictions, drink driving etc?
> Why do some motor insurance specialise in just young drivers?
> Why do some motor insurers specialise in just lady drivers?
> Why do some insurers specialise in higher performance motors?
> What are the road tax rates by specific type of vehicle?
> Who should I contact should I wish to report a problem with an insurance company?
> Who do I contact if I have a complaint against a finance house?
> Who should I contact should I feel I have been a victim of misleading advertising?
> Are motor insurance laws different in Ireland?
> Are motor insurance laws different in Scotland?
> Are motor insurance laws different in Northern Ireland?
> Are motor insurance laws different in Wales?