Dáil debates

Thursday, 8 November 2018

Personal Injuries Assessment Board (Amendment)(No. 2) Bill 2018: Second Stage

 

3:10 pm

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank Deputies for their contributions and welcome the general expressions of support for the objectives of the Bill.

Deputies Kelleher and Eugene Murphy referred to the book of quantum. At the time of publication of the Bill, the second and final report of the Personal Injuries Commission had not been published. This report was subsequently published on 18 September and its key recommendation is that the judicial council, when established, be requested by the Minister for Justice and Equality, Deputy Flanagan, to compile guidelines for appropriate general damages for various types of personal injury. When judicial guidelines are in place, it is intended that they will supersede the book of quantum. The intention for the future is that the judicial council will take ownership of the judicial guidelines for personal injury compensation. The Personal Injuries Commission notes in its most recent report that the development of the judicial guidance follows best international practice and will lead to faster resolution of claims, as well as greater consistency of awards, which is critical to improving the claims environment. This issue was also raised by Deputy Broughan. The Bill providing for the establishment of the judicial council is a legislative priority for the Government. The intention is to make significant progress towards the enactment of the Bill by the end of this year.

On the PIAB recalibrating the book of quantum, Deputy Kelleher made reference to using international comparisons when revising the book of quantum and the levels of damages for the various injury types contained in the book. This is not possible as there is no legal basis or mechanism for the PIAB to do this. Ultimately, levels of damages are set by the courts and this influences the levels of compensation paid throughout the system. Precedents set by the courts are followed by the PIAB and the insurance sector. As I said, the key recommendation is that the judicial council, when established, be requested by the Minister for Justice and Equality to compile guidelines for appropriate general damages for various types of personal injury.

Deputies Kelleher and Quinlivan referred to fraudulent or exaggerated claims. The PIAB does not investigate fraudulent or exaggerated claims. The purpose of the PIAB is to independently assess claims for compensation arising from personal injuries sustained as a result of a motor, workplace or public liability accident and where both parties - claimant and respondent - consent to an assessment. The investigation of fraudulent or exaggerated claims is a matter for the insurance companies involved and An Garda Síochána. As stated by Deputy Penrose, there is legislation covering fraudulent claims. I agree with Deputies Kelleher and Quinlivan that there has been an acceleration in fraudulent claims in recent years and that this is a matter of concern to business owners. I know of a business owner who had three claims from one family in one week. This type of practice has to be dealt with.

On the cost of insurance working group, CIWG, and motor insurance costs, recommendation 26 recommends exploring the potential for further co-operation between the insurance sector and An Garda Síochána in regard to insurance fraud investigation. The second and final report of the Personal Injuries Commission supports the CIWG's recommendation and recommends the establishment of a Garda fraud investigation unit. I am aware that discussions are ongoing with my colleague, the Minister for Justice and Equality, and the Garda Commissioner in that regard.

Deputy Kelleher referred to his Private Members' Bill, the Civil Liability and Courts (Amendment) Bill 2018, which is a matter for consideration by my colleague, the Minister for Justice and Equality. Deputy Quinlivan spoke about the composition of the board of PIAB. In line with Government policy to have more board members appointed through the Public Appointments Service, PAS, section 11 removes ICTU and IBEC as bodies designated under the Act to nominate members to the board. It will be open to ICTU or IBEC to apply through the PAS process when vacancies arise. Seeking expressions of interest for board appointments through the PAS process allows for appointments to be made from a greater number of potential candidates with the desired skill sets, which can vary over time depending on the skills available to the board.

Deputy Quinlivan also raised the issue of reserves. Section 13 provides for a reserves policy for the PIAB. It also provides that the PIAB shall remit to the Minister, for the benefit of the Exchequer, any moneys in excess of those authorised to be retained by the Minister, with the consent of the Minister for Public Expenditure and Reform. The purpose of this section is to implement a recommendation of the Comptroller and Auditor General, received in 2017, that appropriate legislation should be introduced to deal with the excess funds held by the PIAB. Legal advice obtained by the Department is to the effect that legislative change is required to enable the board to remit excess moneys to the Exchequer. The Bill specifically provides that the Minister will have regard to the operational, capital and contingency costs of the PIAB when determining the sum to be retained. This means that sufficient funding will continue to be available to the PIAB to carry out its statutory functions.

Deputies also raised the issue of medical assessments and constitutional rights. The independent medical examination is an important part of the board's assessment process. These examinations are required to obtain an up-to-date prognosis on a claimant. Each claimant, when making a claim to the PIAB, must submit a medical assessment form from his or her treating practitioner. This should provide details of the injuries sustained and the treatment provided at the time of the injury. However, medical reports received from the claimant's treating doctors and submitted with the application form often involve an examination of the claimant too soon after the accident for a recovery to have occurred or for the doctor to advise when recovery would be expected. Therefore, an independent medical examination is arranged with a doctor of the appropriate specialty from the PIAB's independent medical panel. The Bill was drafted in consultation with the Office of the Attorney General. It is important it operates within the Constitution and that we do not remove from people their constitutional right to go through the courts system.

I again thank Deputies for their contributions. I look forward to working with them as I bring this practical and important legislation through its next Stages.

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