Maire Devine (Sinn Fein) | Oireachtas source

I welcome the Minister. I am speaking on this debate on behalf of my colleague, Senator Mac Lochlainn, who is on Government business. I thank the Minister for bringing forward this Bill to introduce changes to how the Personal Injuries Assessment Board works. It is a small step in addressing the escalating insurance costs, which are really hurting motoring and business owners across Ireland. In my area, Dublin South-Central, I hear from many small business owners and motorists, both young and not so young, who are crippled by insurance costs. Just last week, a local club in Crumlin got a grant via social inclusion to allow older people to access the first floor of a building to do a small job on it. They then received the insurance costs because there was a claim from two people attending there. Following the claim by two people, the insurance cost went up from €28,000 to €55,000. It cripples people, especially those trying to do their work or to offer a service to a community.

Insurance companies hold a special place and it is not one of smiles and laughter. They hold that place because it is a legal requirement for motorists and businesses to purchase their services. It guarantees the business and it is a great benefit. The profits should therefore come with some additional oversight. Far more work needs to be done by the Government to challenge the industry, to make operations more transparent and to ensure that Irish customers are protected. With regard to house insurance, my back wall fell in during a storm and it cost a couple of thousand euro to rebuild it. I was charged this excess and that excess and just gave up in the end because I got so frustrated about my insurance claim going up by several thousand euro, so I just stopped. Unless it is really damaged by fire or somebody else has damaged one's property or car, one will not do anything because the companies make it so difficult.

I acknowledge the spirit of this Bill, which seeks to introduce a number of changes to how the board works. The main provisions are to clarify documents required from claimants; to provide it with the power to obtain information from any person; changes to the composition of the board; different levels of fees to be levied by the board and claimants; for the book of quantum to be published every three years; and for several other important issues to be addressed. While I agree that most of the provisions relay the functions of the PIAB and speed up the process for compensation claims, Sinn Féin has a couple of concerns. Our main objection is with the power being sought by the Minister to take the reserves of the PIAB, which stand at €17.5 million. The reserves, which were accrued by the PIAB, should be retained by the body to ensure its independence is protected and allow it invest in the efficiency of its processes. As the Bill passed through the Dáil, we tabled one amendment which sought to remove section 13 in its entirety. Section 13 inserts a new section in the 2003 Act and will provide 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 latest figures, according to a reply to a parliamentary question which was received at the end of December 2018, show reserves of €17.5 million.

The PIAB is an independent State body which assesses personal injury compensation claims. Since its establishment, it has been a successful self-financing organisation. In 2011, the PIAB repaid the Exchequer the almost €7 million it cost to establish the organisation, which shows it is prudent. The successful self-financing structure should be maintained to ensure the body remains fully independent of Government, which is our overall concern given the quasi-judicial service that the PIAB provides. In addition to protecting its independence, the reserves could be reinvested to improve the operation of the body by, for example, reducing the length of time it takes to assess a claim, which is currently 7.3 months.

Furthermore, the functions of the PIAB could be extended by using the money. For example, the PIAB could be given the power to deal with Garda compensation. Currently, every Garda compensation claim, regardless of its value, is heard in the High Court, resulting in considerable legal cost to the taxpayer. We need to examine every aspect and area of public or independent organisations to streamline them and prevent an unnecessary charge to the Exchequer and the people's taxes. The Minister emptying the reserves of the PIAB will not benefit it or the people using its services. We will consider, therefore, retabling the amendment on Committee Stage.

Of the 40% of cases which refuse the offer from the PIAB and take the case to court, does the Minister know how many are successful and whether any of them result in less compensation than the PIAB had offered? How many does the PIAB designate as false or bogus claims? In any effort to regulate insurance and improve the industry, the default position is always that insurance is expensive because there are many bogus claims. I do not know the detail behind that but it seems to be the default response when we complain about insurance costs.

I thank the Minister for introducing the Bill. As I stated, however, Sinn Féin is considering tabling amendments on Committee Stage and we ask the Minister to engage with us in order that we can strengthen the Bill in its passage through the House. I hope this is the beginning of a wave of action by the Government that will include challenging the insurance industry directly, resulting in lower premiums for consumers and businesses.