James Browne (Wexford, Fianna Fail) | Oireachtas source

I thank Senator Mullen for raising this important matter, which I am taking on behalf of Minister of State, Deputy Robert Troy, who unfortunately cannot be here this morning. PIAB is an agency under the remit of the Department of Enterprise, Trade and Employment that independently assesses claims for compensation arising from personal injuries. It can assess claims only where both parties, namely, the claimant and respondent, consent to an assessment. Under the PIAB process, a respondent has 90 days to carry out an appropriate examination of the facts relating to a claim before deciding whether to proceed with the PIAB process. By proceeding with the PIAB process, the respondent would have considered the claimant's case and satisfied himself or herself as to its merits or otherwise. Where liability is an issue, or the circumstances of a claim are disputed, the respondent, generally an insurer, will refuse an assessment of the claim by PIAB so he or she can investigate the matter. In those circumstances, PIAB will release the case and provide authorisation to a claimant to proceed to litigation if he or she so wishes.

PIAB does not investigate the circumstances of claims or address the issue of liability. This is because PIAB is not a court. It is an administrative body that assesses and makes awards for personal injuries based on the personal injury guidelines following consent of the parties and without recourse to court. The determination of liability is, by its nature, a matter of judgment for which a court is the appropriate body and for which a court can take into account the relevant matters presented to it by all parties.

Cases that proceed to court are subject to the Civil Liability and Courts Act 2004. Section 14 of the Act provides that any party to a personal injuries action who has falsely sworn an affidavit is guilty of an offence. Sections 25 and 26 address the matter of false evidence and fraudulent actions and section 29 sets out the penalties for persons found guilty of such acts, including fines of up to €100,000 or up to ten years in prison, or both.

The investigation of fraud is a matter for An Garda Síochána. Any individuals or companies that believe they are the victims of fraud should report it to the Garda. PIAB co-operates fully with any requests for information from the Garda.

The PIAB model, which is based on the consent of parties, works. It saves tens of millions of euro annually that would otherwise be paid in costs by the parties, and ultimately by policyholders. Through PIAB, claims can be settled without the need for many of the costs associated with litigation, which can contribute to the high cost of settling and the cost of insurance.

A range of actions to mitigate insurance fraud are set out in the Government's Action Plan for Insurance Reform. These actions are led, in the main, by the Minister for Justice. Of particular importance is the Criminal Justice (Perjury and Related Offences) Bill 2018, currently before the Houses and which I hope will pass through the Seanad today. When enacted, this will provide a deterrent to the making of misleading or fraudulent statements. It will be a welcome development, particularly regarding the cost of insurance.

As part of the action plan, the Minister of State, Deputy Troy, is currently finalising legislative proposals to enhance and reform PIAB and will engage with the Seanad on strengthening the PIAB process in the near future.

PIAB is not a court. It is an administrative body for assessing and either party can reject the process if he or she feels unsatisfied with it.