155 / 736
Oulton Road, Clontarf, Dublin, 3. Robert Michael
Flynn, Ballyhaunis, Co. Mayo.
John Patrick
Gaffney, 10, Harcourt Terrace, Dublin, 2. Brian
Gartlan, 11, Killarney Parade,
N.C.
Road, Dublin,
7. Garrett Gill, 30, Merlyn Road, Ballsbridge,
Dublin, 4. John N. R. McM. Glynn, B. G. L.,
LL.B,. Ballinacarrig, Killiney Road, Co. Dublin.
Anthony T. Hanahoe, 35, Hollybrook Road,
Clontarf, Dublin, 3. John F. Hayes, B.C.L., LL.B.,
Tyrone, Nenagh, Co. Tipperary, Silver Medal.
James Heney, B.G.L., LL.B., Kilfeacle House,
Tipperary. Declan A. Howley, Wine Street, Sligo.
Desmond Houlihan, B.C.L., LL.B., Cragleigh
House, Ennis, Co. Clare. James W. Houlihan,
B.A., 10, John's Place, Birr, Co. Offaly. William
A. James, La Verna, Mountgorry, Swords, Co.
Dublin. John H. Matthews, River Hill, Baltray,
Co. Louth. Donnchadh O'Buachalla, 12, Ardagh
Park, Blackrock, Co. Dublin. Maeve Therese
O'Donoghue, B.C.L., 13, Brighton Vale, Monks-
town, Co. Dublin. Malachy J. O'Kane, B.A.,
"Sanzio", The Crescent, Ballintemple, Co. Cork.
The solicitors and their friends were subequently
entertained to tea in the Council Chamber.
PROFESSIONAL INDEMNITY INSURANCE
The Case for a Rate Increase.
All leading insurers have increased the premiums
on Solicitors' indemnity policies with effect from
1st December, 1967. Although this is in fact the
first general increase in rates since 1st January,
1962, it will inevitably be the cause of much con
cern in the profession. Such questions as: "Are
the increased premiums justified? "What can be
done to prevent further increases?" "Are solicitors
with a good record unduly subsidising those with
a bad record? are sure to be asked.
The reasons for the immediate premium in
crease can be given in three words, namely, "in
creased claims payments".
With the present position worsening the follow
ing considerations also weigh heavy with insurers:
1. Undoubtedly the professional man has an in
creased burden of responsibility under the Hedley
Byrne v. Heller principle. There has not yet been
a case in court of a claim against a solicitor re
lying on the principle, but there have been many
cases advised to insurers of such circumstances.
2. Court awards in this country are still far lower
than comparable cases in France, Ireland and, of
course, America. The leeway is, however, rapidly
being made up. The premiums must inevitably
bear some relationship to these increasing awards,
as so many claims result from personal injury writs
going out of time.
3.
Premiums are calculated on a per capita basis.
With the inevitable inflation which is built into
our economy, the sums which solicitors handle
certainly rise, but solicitors do not necessarily have
to employ more staff to deal with the situation.
4. Many of the larger firms with offices in the
centres have been employing organisation and
methods men to have themselves computerised and
automated. One firm is reported as having effected
a twenty per cent reduction in staff. There is
hardly a reduction in risk to the insurer.
5. The Companies Bill and the corporation tax
and the vast quantities of paper now emanating
from Whitehall makes the solicitor's life extremely
complicated. It is almost too much to ask to keep
up with it all, but potential risk to his professional
indemnity policy is increased.
Not only are some of these additional risks in
themselves, but they also contribute to the fre
quency of the traditional claims. Each year in
creasing amounts are paid out as a result of failure
to institute proceedings within the statutory period
for personal injury claims. This situation could be
further aggravated by recent court decisions. The
Law Society has this situation under close surveil
lance, as failure to reverse the decisions will make
the pitfalls of personal injury claims even greater.
Failure to make adequate searches in conveyanc
ing matters and failure to register hire purchase
companies under the Moneylenders Act are other
causes of very substantial losses to insurers.
Inevitably the solicitors who have been insuring
for a considerable number of years and who have
never had a claim will feel that they are financing
their careless colleagues, and should not, them
selves, be called upon to pay additional premiums.
The principle of insurance is, however, that the
misfortunes of the few should be spread among
the many. Instead of having an average scale to
which percentage reductions are applied following
a good record, a minimum rate is charged and so
firms which have a worse than average claims
experience must have terms applied. These usually
take the form of a compulsory uninsured excess or
a precentage increase in premium. Thus a sort of
no claimes bonus in reverse is established and there
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