IHF call for action on crippling insurance costs
The average insurance premium for hotels and guest houses has risen 351% between 2000 and 2003, according to new figures.
The Irish Hotels Federation (IHF), who conducted the survey, has called for the immediate introduction of a Personal Injuries Assessment Board (PIAB) to combat what it terms 'fraudulent and exaggerated claims'.
It pointed out that insurance costs are now the biggest threat to the viability of their business in the near future and has outlined four core areas that are causing its members greatest concern.
These include insufficient competition in the insurance market, fraudulent and exaggerated claims being an endemic problem as well as legal and professional fees being unnecessarily high drivers of costs and under-pinning increases in claims.
The IHF also stated that Ireland has higher compensation costs than our European counterparts.
Commenting on the survey of more than 900 hotels and guesthouses, Jim Murphy, President, IHF said: "Radical reform is urgently needed to ensure the viability and survival of the hotel and guesthouse sector, whose spiraling operating costs are seriously eroding competitiveness.
"A criminal charge of insurance fraud should also be introduced and resources for its enforcement be made available. This would reduce the number of spurious claims. The time for action is long overdue," he added.
The IHF will submit their findings to a Joint Oireachtas Committee on Enterprise & Small Business later this week.
