Insurance premiums are not expected to rise to cover the £200,000 that the Health department plan to charge insurers every year – but talks between the Health department and insurers will take place over the summer about increasing the charges further.

As of Sunday, the Health department will demand £2,000 from insurers for treating someone who has been involved in a car accident and who stays in hospital, and £200 for treating someone who does not need to stay in overnight.

They have had the power to levy the changes under the law since 1989, but have never used them. Under the law, the payments will only be made when insurance claims are settled. Hospital managing director Andrew McLaughlin said that the money would come from companies, not patients.

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