Compo culture

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Firefly

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Yet another event pulled due to the compo culture that has developed in Ireland. This is really getting out of hand.

Popular beer festival Oktoberfest has announced it is cancelling its Dublin event this year due to "unprecedented increases" in its insurance premium.

 
Is there any figures behind this "compo culture"? In terms of the amount of claims and the payouts?
 

The journal have done one of their FactChecks on this. The results appear to contradict the sentiment that it is "compo culture" that is driving premiums up.

Aren't insurance companies required by law to keep significant amounts of their capital reserves in government bonds? The same bonds that are yielding negative interest rates? Could this be a factor in driving premium rates higher. In other words, a bail-in.
 
Events like this are no great loss, other than to drinks companies, they add nothing culturally or intellectually. I believe we need fewer events where the enjoyment seems to be in indulging in excess amounts of alcohol, vomiting and goodness knows what else on the landscape, fighting and all the other unpleasant consequences of mass intoxication.

On the wider issue, sticking it to "the man" with inflated or false insurance claims is also endemic as demonstrated by recent high-profile cases. Are insurance companies greedy? Yes and also have questionable financial expertise. RSA Ireland, ICI, PMPA, and countless others seem to attest to the fact that they're either financially incompetent or run by crooks, and of course, the regulatory framework is a bad joke, again established and run by people not fit for the job or with another agenda.
 
Is there any figures behind this "compo culture"? In terms of the amount of claims and the payouts?
I would visit any civil sitting of a district Court and watch the shenanigans - it will be an eye opener for you on the daily scams that take place and how if a particular judge is sitting, cases are suddenly withdrawn.

And these are the cases that get to court.

In one Naas sitting 8 cases were withdrawn - in 6 of them costs up to that day were awarded against the plaintiff, but the chances of getting those costs are non existent.
 
I would visit any civil sitting of a district Court and watch the shenanigans

I have no doubt about it. But it works both ways. The "no claims bonus" is bare faced shenanigans. How many genuine claims are not claimed for, for fear of losing the no claims bonus? Insurance companies save a pretty packet in that regard.

But either way, shenanigans have been with us for a long, long time. Why are premiums being pumped up now? If the Journal FactCheck is anything to go by, its not because of increasing claims or awards.
 
In one Naas sitting 8 cases were withdrawn - in 6 of them costs up to that day were awarded against the plaintiff, but the chances of getting those costs are non existent.

While the chances of the defendant recouping their costs are indeed probably small, I would think that the chances of the plaintiffs solicitor getting paid are also small.

These orders for costs might discourage solicitors from taking on the more "optimistic" cases.
 
The plaintiffs legal representation have some questions to answer also. Imagine taking a case and not being aware of the facts!
 
Exactly...did no one in the Solicitor's office in that case look at the invoices and verify the dates! But they'll not be censured for wasting Court time and this chancer will also probably get away with it as I don't see the DPP doing anything
 
The plaintiffs legal representation have some questions to answer also. Imagine taking a case and not being aware of the facts!

It was the barrister who said that he wasn't aware, and generally they would not be aware of such matters.

The solicitors on the other hand should certainly have known, and probably did.
 
But either way, shenanigans have been with us for a long, long time. Why are premiums being pumped up now? If the Journal FactCheck is anything to go by, its not because of increasing claims or awards.
Motor insurance has come down substantially in the last couple of years. This year is the first time that mine is under €500 (business use)
Wifes insurance quote just arrived, it's under €400, again first time under this level.

The insurance that has skyrocketed is public liability, but changes to how you can make a claim and the manner more judges are dealing with obviously exaggerated claims should see it changing, but for real change the legal profession needs to look at itself
 
While the chances of the defendant recouping their costs are indeed probably small, I would think that the chances of the plaintiffs solicitor getting paid are also small.

These orders for costs might discourage solicitors from taking on the more "optimistic" cases.
Looks at the typical costs awarded in a district court cases. 8-10k for solicitors and 4-6k for barristers (that's low end)

You don't need to win all cases to earn a decent living.
 
Motor insurance has come down substantially in the last couple of years.

Mine hasn't, but that is beside the point. That only contradicts the report that premiums are rising.

The insurance that has skyrocketed is public liability,

But why has it skyrocketed?
The evidence suggests that the amount of claims and the associated awards has dropped.
 
Mine hasn't, but that is beside the point. That only contradicts the report that premiums are rising.



But why has it skyrocketed?
The evidence suggests that the amount of claims and the associated awards has dropped.
Not public liability. A friend of mine is involved in the play center business and a key member of their insurance group. Frivolous claims have risen substantially and many hope that claims are settled.

Insurance companies are now taking a much harder line and a drop is being seen, but it will take a while to feed to premiums.

Even in my own business, if I wanted to open a Cafe in a disused space, the insurance would go from about €1200 to over €3k.

If your car insurance has not dropped check around and add a partner as named driver - it can cut 20% off.
 
Yet another event pulled due to the compo culture that has developed in Ireland. This is really getting out of hand.

Popular beer festival Oktoberfest has announced it is cancelling its Dublin event this year due to "unprecedented increases" in its insurance premium.



"He revealed how a woman received €16,000 after a plastic flag with a beer logo fell on her shoulder and another woman received €36,000 after she twisted her ankle while walking."


I don't know how many times I've twisted my ankle....it tends to mend itself. In any case, if treatment was necessary, it should be easily fixed with 6 trips to a physio. So the award should be 100 times smaller
 
Here is an interesting article from IT on the "compo culture".


A business person going about his business is landed with a premium hike from €4,000 to €12,000 for, what on the face of it, was a dubious claim.

Here is the bit that stands out for me;

“The insurance company settled it without discussing it with me.”

What is going on here? Insurance companies hiking premiums on the basis of mounting claims (except that facts suggest the opposite) wont even contest the claims?

Ive worked in insurance, for one of the big global companies when I lived in Australia. Specifically, I worked in an area that held files on Australian police officers who were claiming compensation as a result of injuries or trauma suffered in the course of their duties.
The level of detail that these files held on the activities of the police officers was staggering. Photographs, time of leaving home, where they went to, what they did, how they did it. If an officer was claiming injury to their right hand for instance, everything that the officer used their right hand for was monitored - opening car door, holding shopping bags, waving, handshakes, gardening, playing cricket, etc...etc...
All of it was used to challenge the claim of injury, or the extent of that injury. So claims of $5,000 were thrown out, or reduced to maybe $500.
It also had the effect of deterring bogus claims (if any) as the officers knew they would be rigorously monitored.

But here, there is no apparent contest. Just pay out the compensation, and then increase the premium.
Who does this suit?
 
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