The Tánaiste says she is confident the new Personal Injuries Assessment Board will face no constitutional difficulties, will be operational early next year and will help drive down insurance costs. Mark Brennock, Chief Political Correspondent, reports.
Introducing the long-awaited Bill yesterday setting up the new body, Ms Harney said it showed she was keeping her promise to reduce insurance costs. While debate on the new Bill begins in the Seanad tomorrow, it may not be enacted before the end of the year as initially promised. However Ms Harney said yesterday that the board would be operating "early in the new year".
The Personal Injuries Assessment Board (PIAB) will make awards in relation to claims where legal issues are not disputed. All such cases must first be referred to PIAB. In contrast to the current adversarial system with legal teams on each side, the assessors with PIAB will be inquisitorial, seeking themselves to ascertain the facts of each case.
A Book of Quantum giving guidelines as to damages to be awarded for different injuries will be compiled to be used by PIAB. The board will also be able to award special damages for items such as loss of earnings and medical expenses.
If parties do not accept the outcome of the PIAB assessment they may reject the award and take court proceedings instead.
The board will first deal with employers' liability claims before covering public liability and motor accidents. Assessment of damages will be based primarily on the medical report from the claimant's treating doctor. In some cases a member of the independent medical panel which is being established by PIAB will examine the claimant.
PIAB will reduce the cost of delivering compensation by eliminating the need for expensive legal fees and by providing a speedier means of finalising assessments for genuine claimants than the current court-based system, the Tánaiste said.
She denied that PIAB was being set up to cut the level of awards to claimants, saying its aim was to cut the cost of delivering such awards.
"Litigation costs add in excess of 40 per cent to the cost of compensation, and this has contributed to the high cost of insurance in this country," she said.
"By eliminating the need for litigation costs where legal issues are not in dispute, PIAB will significantly reduce the cost of delivering compensation."
She said claimants in Ireland waited six times longer than in the UK for negotiations to commence on personal injury claims.
Asserting that the Government's insurance reform programme was working, she said that three major insurance companies had in the past week indicated that they would reduce premiums in the light of the level of recent claims.
"Today marks another milestone in our efforts to reform the industry, and I am confident that when PIAB is up and running further cuts in insurance premia will ensue."
Other measures the Government believes will drive down premiums include penalty points and legislation being prepared by the Department of Justice to streamline court procedures for personal injury and to outlaw spurious claims.
She said interviews were now taking place to recruit the first chief executive of the new board.
"Tenders have issued for the IT systems required to facilitate the operation of the board, a panel of independent medical examiners has been established and potential premises has been identified."
The publication of the legislation showed she was keeping her promise to deal with high insurance premiums, she went on.
"As a result of this and other Government initiatives I would expect further significant cuts in insurance premia. I say to the insurance industry we are doing our part and we expect you to do yours".
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