The Irish Road Haulage Association (IRHA) has demanded urgent Government action to tackle spiralling insurance costs, warning that soaring premiums are forcing small businesses across rural Ireland to shut down.
IRHA President Ger Hyland said hauliers feel “helpless” as motor, employer liability and public liability insurance costs continue to rise. His comments came as the association submitted proposals to the Department of Finance as part of the new Insurance Action Plan 2025–2029 consultation.
In its submission, the IRHA told government that insurance, in particular Employer Liability and Public Liability Insurance, are threatening the viability of small businesses across Ireland.
Hauliers join a growing chorus of interest groups that are insisting that Government pressure insurers into passing on savings from years of falling claims.
Hyland criticised the fact that too many cases are still being settled through our court system rather than through the Injuries Resolution Board, even though compensation levels reached through the Injuries Resolution Board, IRB, are on par with those reached through the courts.
Hyland said that some in the legal profession had questions to answer for advising people to choose litigation over the IRB route and accused some in the legal profession of price gouging on legal costs and encouraging claimants to pursue exaggerated claims.
He added: “I listened to a presentation by an insurance broker at our recent conference. That broker told us that awards for psychological damage jumped from 1 in 20 cases in 2021 to 1 in 4 by 2024—prompting concerns that psychological claims are fast becoming the “new whiplash. That means that people may not have suffered any physical harm but are still claiming for PTSD and so on.”
Independent Oversight
The IRHA has also called on government to introduce a robust independent oversight mechanism to monitor the financial performance of insurance companies to ensure that they are passing on savings from reforms to policy holders. The IRHA has accused the insurance industry of not passing on savings that government reforms of the last number of years are delivering for them.
Mr Hyland added: “Some independent entity needs to interrogate the operations of the insurance companies to ensure that they are working for the greater good and not just serving their own interests by keeping costs, and premiums, high. ”
Hauliers say that insurers are far too willing to go for the easy option and agree a settlement with a claimant at a discount rather than fighting dubious cases in the courts.
“Insurers should be compelled to have proper and meaningful regard to the interests of policyholders when deciding if they will fight or settle a case. They need to examine the increased cost to the policy holder of their insurance renewal as well as the precedent that settling questionable claims might create in the work place,” Mr Hyland concluded.
