Fast-food boss warns of sharp rise in claims culture
Supermac's chief Pat McDonagh: 'The rise in claims culture arises from people seeing it as a solution to their economic woes'
THE boss of fast-food chain Supermac's has warned of a rise in the claims culture which will mean insurance costs will increase for businesses and consumers.
Pat McDonagh's comments come after Hibernian Aviva said motor premiums for consumers were set to rise by between 10pc and 15pc this year.
Last week, it was confirmed to this newspaper that insurance group Quinn Direct has increased its private motor premiums. Mr McDonagh, who has been campaigning against false compensation claims for years, yesterday predicted that the recession would prompt a sharp rise in claims.
His group has 91 fast-food outlets in the Republic
"In an economic downturn, businesses need to be aware of the growth in claims culture. In our business, we would have seen a major growth in claims in the last six months, which wasn't as prevalent in the last six years. The rise in claims culture arises from people seeing it as a solution to their economic woes," he added.
Meanwhile, the country's largest general insurer, Hibernian Aviva, has noted a sharp rise in claims, with a 20pc increase in own damage claims -- where people damage their own cars -- and an increased number of cases going through the High Court. The company's chief executive, Stuart Purdy, said consumers were set to face increases in motor premiums of 10pc to 15pc this year and increases on home insurance of up to 20pc.
These increases are necessary as insurance has been too cheap and pricing is readjusted to match risk, the company said.
The comments from Hibernian Aviva follow comments from Quinn Direct last week which confirmed that prices in some areas in private motor insurance in Ireland have risen.
The rises were confirmed to the Irish Independent by general manager Colin Morgan.
Credited with triggering massive falls in car insurance premiums, Quinn Direct has traditionally used price as its main point of difference, but is believed to have recently begun easing up its rates.
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- Charlie Weston Personal Finance Editor
