THE Taoiseach has raised the prospect of holding a referendum to cap insurance payouts if the government’s insurance reforms do not work.

Mr Varadkar raised the possibility at the Fine Gael parliamentary party meeting on Wednesday night where TDs spoke out on the issue.

Dublin Bay-South deputy Kate O’Connell hit out at people taking unjustified personal injury claims. Ms O’Connell said “life is a contact sport” and that sometimes people fall over and hurt themselves and it’s nobody else’s fault.

Ms O’Connell said TDs make laws that are being “pushed to the limits” by some professionals who are advising people on making claims.

She said two thirds of all compensation claims are more than €25,000 which she said was around the average industrial wage after tax.

Ms O’Connell said it was “not acceptable” to people that their neighbours could earn a years wage from a compensation claim.

The private Fine Gael discussion came just days after the Irish Independent exposed how some lawyers and GPs are fuelling compensation culture by actively encouraging patients to bring claims.

Mr Varadkar is said to have spoken of a referendum as a last resort if reforms, including possible future legislation, do not bring down the amount of court-awarded damages.

Fine Gael TDs and Senators were given a presentation by junior finance minister Micheal D’Arcy, who has responsibility for the insurance sector.

Mr D’Arcy’s presentation outlined the steps taken to date by the government to implement reforms in the insurance sector, including a new committee set up under the Judicial Council Bill which is due to issue new guidelines on personal injuries awards next year.

His presentation also noted that one of the key achievements of the government’s reforms has been increased co-ordination and cooperation between An Garda Síochana and the insurance industry with regard to tackling fraud.

Mr D’Arcy’s presentation, seen by Independent.ie, also outlined how the Law Reform Commission is currently undertaking a detailed analysis as to whether the government could establish “constitutionally sound” legislation to cap or limit the amount of damages a court may award. It is due to publish a consultation paper in the next few weeks

Mr D’Arcy’s presentation stated: “If, for whatever reason, award levels do not fall in line with other jurisdictions, or if the guidelines fail to be followed by the judiciary, the Government may need to consider the possibility of legislating to limit/cap awards, if the Law Reform Commission deem this constitutional.”

Speaking later in the Dáil, Mr D’Arcy said in relation to compensation claims: “The era of easy money is over.” He also took aim at the medical and legal professionals who are “facilitating spurious claims” and said they need to recognise that this practice needs to end.

Mr Varadkar has previously raised the prospect of a referendum in the context of bringing down the cost of public liability insurance for business and voluntary organisation.

Meanwhile, Sinn Féin’s Consumer Insurance Contracts Bill passed through all stages of the Seanad on Wednesday evening.

The legislation proposed by finance spokesman Pearse Doherty will reform insurance contracts, increasing transparency and tilting the balance in favour of the consumer. It is being backed by the government.

Online Editors