Fat cat lawyers are cashing in on accident victims by taking almost half of totals paid out in compo in legal fees.
Shocking new data from the Central Bank this week has revealed that if somebody makes it through the courts and wins an injuries case, 40% of the proceeds are gobbled up by the lawyers.
If the claimant had gone through the State’s own arbitration body instead, the PIAB (Personal Injuries Assessment Board), the costs only take a fraction, just 3%, from the successful claim.
This is despite the value of the claims won being practically the same.
Sinn Féin finance spokesman, Pearse Doherty, has been leading the fight in taking on the insurance industry and their inflated premium prices in recent years.
But this is not the only thing driving up costs for consumers in insurance with the huge legal costs being pulled in also a massive factor.
Mr Doherty is now calling for the outrageous price-gouging by lawyers to stop and he wants the powers of the PIAB strengthened through legislation to make this happen.
Mr Doherty said: “Data published on Monday by the Central Bank have offered greater insight into the claims and settlement process for motor insurance.
“This is a welcome development.
“It is essential that the National Claims Information Database publishes similar data for public and employer liability in 2020, to ensure the Dáil has the information it needs to further reform the insurance market.
“While December’s report by the Central Bank laid bare the insurance industry’s price-gouging of consumers, yesterday’s data clearly shows that the big winner in the courts is the legal industry.
“The data shows that while compensation for claimants in the courts compared to through the Personal Injuries Assessment Board has varied little from 2015 to 2018, legal costs rose considerably for settlements that reached the courts.
“For example, in 2018 the average compensation for a settlement made in the courts was only marginally higher than one made through PIAB. In comparison, legal costs were more than 17 times higher in the courts than in PIAB, comprising nearly 40 percent of the total cost.
“Since 2015, legal costs have swallowed up almost 40 percent of the total cost of settlements in the courts, compared to 3 percent through PIAB.
“Cases which reach the courts, while benefitting the legal industry, offer little for claimants.
“It is clear that the role and functions of PIAB must be strengthened, both to guarantee better outcomes for policyholders and to reduce legal costs, which are ultimately passed on to consumers.
“Sinn Féin will continue to hold insurance companies and the legal industry to account while standing up for consumers.”
