Ollie Crowe (Fianna Fail) | Oireachtas source

I thank Senator Mullen for his work on the Bill. The Government is not opposing it. I share the Senator's determination to get reform in this area and I have raised it with the Minister of State, Deputy Troy, and other colleagues on a number of occasions. I am aware that Senator Mullen has also met the Minister of State, Deputy Troy, to discuss the issue, and that the Minister of State has advised him that the Government is open to reform along the lines of this Bill.

The Minister of State has been developing legislative proposals to enhance and reform PIAB. The general scheme should be published in the coming days. The Minister of State's objective is to increase the number of personal injury claims settled through PIAB and to avoid the expense and time associated with litigation.As Members of this House, we are all aware from speaking to owners and operators of hotels, restaurants and pubs, particularly businesses in west Galway, of the challenges that lie within these types of claims. The vast majority of people across the country have no connection with this. As Senator Mullen and all other Members will be aware, the Minister of State has noted that insurance fraud is a criminal matter and that allegations should be referred to An Garda Síochána. That is already provided for in the legislation. Creating a new offence in the PIAB Act may potentially be unnecessary. Further examination of the matter is required. If there is merit in introducing these provisions, the Minister of State, Deputy Troy, will revert with proposals to the Government.

Overall, we need to reform insurance broadly, and the programme for Government has committed to doing so. It is essential that work is carried out in that regard. Again, from my experience, I can speak to the hugely damaging impact insurance claims can have on businesses. As all Members of the House will be aware, payouts in Ireland for a long time were some of the highest in the world, likewise our premiums. This is having an extremely damaging impact on businesses and motorists. In recent months we have seen car insurance premiums in particular come down. We all welcome that, and that is the way we need to continue. We need to increase the availability and affordability of insurance for businesses, consumers and community and voluntary groups across the country. Reform of the Personal Injuries Assessment Board is an essential part of that reform agenda.

The action plan for insurance reform sets out 66 actions to be delivered across the Government. It is one of the most important programmes this Government will undertake. Progress has been made in delivering the action plan but there is still much work to do, and it is important the Government seeks to move forward with urgency. My understanding is that the Tánaiste will convene a meeting of the sub-group on insurance reform very shortly to consider progress made to date and that the sub-group will continue to meet in the coming months to ensure that momentum on reform is maintained. The action plan contains a number of actions relating to fraud. The Garda insurance fraud co-ordination office was opened in July 2021. I think we all welcome that. The establishment of that office will improve co-operation and co-ordination with the insurance industry and bring consistency to the handling and investigation of insurance fraud. Referrals should facilitate the referral of more cases to the DPP for prosecution.

The Department of Justice has examined deterrents to insurance fraud, including penalties for insurance fraud, in consultation with the relevant agencies. An important milestone was achieved in 2021 with the enactment and commencement of the Criminal Justice (Perjury and Related Offences) Act 2021, increasing the range of options for investigation, prosecution and penalties on conviction that can be considered for those making fraudulent or misleading claims. As I pointed out earlier, and as Senator Mullen has pointed out, this is a minute percentage of our population. The commencement of the personal injuries guidelines is a significant reform and is making a huge impact. Under the guidelines, award levels have decreased across nearly all ranges, with the reduction ranging from 31% to 70%, depending on the severity of the injury. PIAB data have shown a significant downward shift in award values, which will reduce the cost of claims. Data from the Central Bank show that the average cost of motor insurance policies has decreased by 20%. The Government will publish a 12-month report on the action plan later this month.

Once more, my view is that the Government has taken some positive steps which have made an impact but that more can be and needs to be done before this matter can be considered fully addressed. I hope and expect that action similar to what Senator Mullen proposes in this Bill will be implemented in the short term, following the previously mentioned examination of this matter.