Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Cuirim fáilte roimh an deis labhairt ar an ábhar seo tráthnóna inniu. We are all aware that the insurance market is not working for consumers. PIAB was established to facilitate compensation to people who suffered personal injuries in a way that was fair, transparent and cost effective without the need for costly litigation.

PIAB has been effective in reducing costs and producing prompt outcomes for claimants. From 2015, right through to 2020, the average personal injury award for motor claims through PIAB was €22,000 compared to €23,000 through the courts. It is almost identical. That is a clear message that should go out to people. People do not get more money through the courts. It just delays them and the lawyers will make the big wins.

The big difference is in legal costs. The average legal costs going through PIAB were €665, compared to €15,000 through the courts. It is clear that PIAB is working for claimants but not for the legal industry, which can extract more for itself through litigation.

Given this is the case, it is a source of great frustration that only 15% of motor claimants settled through PIAB in 2019 and 2020, compared to 36% who settled through litigation. PIAB is working well but it is not doing enough work. We need more work to go through PIAB. This legislation seeks to enhance and reform it.

The Bill proposes to change the name of PIAB to the personal injuries resolution board and another provision relates to increasing the scope of injuries that the board can now assess.

In the past, PIAB was unable to assess claims consisting of psychological damage, given that they were not provided for in the book of quantum. The assessment of these injuries is now provided for in the personal injuries guidelines, with the Bill providing that the board will now be able to assess claims of this nature and that is welcome.

With regard to the new personal injury guidelines, I note that the average PIAB award has fallen by more than €12,000. It has almost halved since the new guidelines were adopted. I again urge the Government to support my judicial council (amendment) Bill which would put pressure on insurers to ensure transparency in order that the benefits of these reduced costs are passed on to consumers and not pocketed by the industry.

This Bill provides for a mediation process which the board will facilitate. Under mediation, parties will be able to avail of legal representation or independent legal advice.

At present the Bill does not outline who will be responsible for costs if a mediation is unsuccessful and I ask for clarity on this issue. An important provision of the Bill relates to the claimant who rejects a PIAB award but fails to get a higher award in court. There is already legislation on the Statute Book about this but this removes the discretion and in this case such a claimant must pay his or her own and the defendant's costs in the litigation process to encourage greater acceptance of the PIAB process and fewer cases moving to the courts.

I welcome the policy objective of the Bill but there are issues that deserve further scrutiny and we will have an opportunity to do that on Committee Stage. It remains an open question whether this process will create additional delays or costs to the PIAB process or if it will have the impact we all desire where the number of resolutions is increased and the costs are ultimately reduced. What is clear is that the PIAB works well but we need more people to be using it as the only recourse, thereby reducing claims, costs and ultimately insurance for consumers.

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