Harney says new claims system will be quicker

A new body which will adjudicate on compensation claims as part of a Government initiative to lower insurance premiums is due to begin hearings from May onwards.

The Tánaiste, Ms Harney, said she was confident the Personal Injuries Assessment Board (PIAB) would help solve many of the problems leading to high insurance costs.

"Litigation costs in personal injury cases have contributed to the high cost of insurance in this country, and genuine claimants have had to wait far too long for their cases to be settled. I am confident the PIAB will address these problems."

By eliminating the need for litigation costs where legal issues are not in dispute, it is hoped the "lawyer-free" system will cut the cost of delivering compensation and offer speedier assessments.

Overall, the Government estimates the PIAB will contribute to a 7 per cent drop in insurance costs.

However, the Bar Council and the Law Society have expressed doubt over the impact of the new system and some have questioned whether savings will be passed on to customers.

The PIAB will hear employer liability cases in the first months of its existence, progressing to public and motor liability.

Ms Harney was speaking at the launch of a voluntary code for safety in the workplace yesterday, which is also aimed at speeding up the processing of insurance claims and fast-tracking treatment of work-related injuries. The code, developed by a range of bodies including the Irish Congress of Trade Unions and the employers' group IBEC, is aimed at complementing the work of the PIAB.

Mr David Begg, ICTU general secretary, said: "Safer workplace with fewer accidents and lower insurance should result from a combination of an effective PIAB and the introduction of genuine partnership to a vital area of workplace relationships."

IBEC's director general, Mr Turlough Sullivan, said the code would help eliminate unnecessary costs associated with injuries, while at the same time providing fair and humane treatment of genuinely injured employees.

Meanwhile, recruitment to the board is under way. It is due to have a staff of 85 when fully operational. The PIAB will also contract work out to a service centre, which will assist injured parties in completion of their claims.