Ruling could lead to insurance hike, says IBEC

Reaction:The High Court ruling against the Personal Injuries Assessment Board's policy of not dealing with solicitors may lead to a rise insurance costs, the employers' group IBEC has claimed.

IBEC assistant director Mr Tony Briscoe said today's decision represented a setback to efforts to speed up the personal injury claims process and reduce costs.

He also warned that the decision could lead to higher insurance costs for the public.

"The purpose of the PIAB is to speed up the process of compensation, reduce delivery costs, particularly legal costs, and to provide transparency and communication with the claimant," said Mr Briscoe.

"Today's decision runs contrary to these aims and can only be regarded as a blow to the consumer and to business," said Mr Briscoe.

He urged PIAB to appeal the decision and seek legal advice from the Attorney General to establish if an amendment to the Personal Injuries Assessment Board Act of 2003 was necessary.

However, the ruling was welcomed by one of the State's largest unions. The Technical, Engineering & Electrical Union (TEEU) said it believed the PIAB system was "inherently flawed".

Acting General Secretary Mr Eamon Devoy said the PIAB policy adversely affects employees' taking claims for industrial injuries. "On average three TEEU members are killed every year and many more seriously injured, so we are very aware of the problems involved for workers taking claims," he said.

He welcomed the fact that claimants would now be able to seek legal advice but said the TEEU was still concerned claimants would still be liable for legal costs.

Mr Devoy said the reality of making it more difficult for workers to take claims would be that workplaces would become more dangerous, "given the lack of any measures to deal with identified hazards".

The Labour Party's enterprise, trade and employment spokesman, Mr Brendan Howlin, also welcomed the decision, describing it as "inevitable".

He said he raised the issue with the Tánaiste, Ms Harney, when she introduced the Act in the Dáil. He said he tried to insert an amendment into the Act allowing claimants to nominate a solicitor, if they wished. This was refused.

"Today's judgment points out how rigid and inflexible PIAB policy, backed up by the Tánaiste, is."