PERSONAL injury claims from motoring or workplace accidents should be heard by an independent tribunal rather than the courts, a report commissioned by the Government recommends.
Such a tribunal could hear cases where liability was not in dispute and where both sides were in agreement to put the case before it, consultants, Deloitte & Touche, suggested in its report for the Minister for Commerce, Science and Technology, Mr Pat Rabbitte.
Mr Rabbitte, who requested the detailed examination of insurance costs 18 months ago, said he favoured a tribunal system as a less expensive mechanism for resolving small claims disputes than the courts, as the parties would not need legal representation.
The consultants forecast potential savings in costs of about £50 million per annum if a tribunal processed all such small personal injury claims where defendant and plaintiff were agreeable.
Under a tribunal system, the parties would still have the right to appeal to the courts, however. The report says the tribunal could base awards on guidelines being drawn up by judges for court awards in personal injury cases.
In the report, the consultants said legal costs in personal injury cases varied widely and were highest for small awards (up to £20,000) and decreased proportionately as the amount of compensation increased. Legal costs "may be regarded as excessive in the case of smaller claims", the consultants stated.
The Government will set up a special working group to examine how to expedite the establishment of a tribunal, the Minister said yesterday.
Both the Bar Council and the Law Society of Ireland welcomed the report last night. However, the Fianna Fail spokesman on commerce, Mr Ned O'Keeffe, accused Mr Rabbitte of continuing to procrastinate over action on insurance costs.