Michelle Mulherin (Fine Gael) | Oireachtas source

Okay. I will move on from that. I recall that the establishment of the Personal Injuries Assessment Board in 2003 was highly controversial with lawyers. It was heralded as a way to reduce insurance claims and costs in this country, but it has failed in that respect. Aside from some benefits that have been shown over a period of time, it is clear that it is going to fail on the basis of the figures I have cited, which show that the claim amounts and levels of compensation paid are very small by comparison with the income levels of insurance companies. I suppose the point I am making is that if, as it would seem, 60% of claims are settled through the Injuries Board when people accept the amount that is assessed, it could easily be argued on the basis of the involvement of lawyers and insurance companies that 60% of claims could be settled outside of court without requiring any litigation at all. I understand the point that we should have a system that is a less adversarial and, as Mr. Priestly pointed out, more administrative in nature. Is it really working? Has the establishment of another Government body been justified?

It seems to me, based on my experience as someone who has practised as a solicitor in this area for some time, that in many instances this system encourages people with spurious claims. It makes it a lot easier. It is not as intimidating as having to pursue a claim in court. It costs €45 to lodge a claim. It costs a certain amount for medical reports as well. The person who is responding to the claim has to find €600. While there are legitimate claims and there are legitimate people involved, I wonder what function this structure is serving at the moment.

What it was being praised for, and what was meant to come about as a result, is not happening now. I agree that compensation claims are just a component of the make-up of premiums and what is being charged. I am at a loss about this. In many ways this operates as a gateway; many of the cases being settled might have been settled anyway. I will pose that question.

I have a question for the actuary, Mr. Dunne. How many underwriters are based in or work in Ireland? If there are not many, is it an issue? It seems many underwriters are in the United Kingdom, so how does this affect our position? I also note that the UK does not have an injuries board but we do. That is not meant as a sign of disrespect to anybody working with the Injuries Board, but when one considers what it is supposed to do, one can see it is not working. It may not be the fault of the witnesses, but is it now defunct?