Brian O'Shea (Waterford, Labour)
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Question 241: To ask the Minister for Enterprise, Trade and Employment his proposals to reduce the cost and ensure the availability of public liability and employer liability insurance for community and voluntary organisations; and if she will make a statement on the matter. [23197/04]

Micheál Martin (Cork South Central, Fianna Fail)
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Following the establishment of the Irish Financial Services Regulatory Authority and the end of the my Department's involvement in the insurance reform programme, the Department of Finance will have overall responsibility for policy and legislation in relation to the provision of financial services in Ireland.

A key initiative in my Department was the establishment of Personal Injuries Assessment Board which I am confident will lead to reduced premia and improve the availability of public and employer liability insurance to the benefit of community and voluntary organisations. By eliminating the need for litigation costs where legal issues are not in dispute, the PIAB will significantly reduce the cost of delivering compensation. The PIAB will also offer speedier assessments to the benefit of claimants.

It is generally recognised that litigation costs add between 40% and 50% to the cost of a personal injury claim. It is intended that PIAB will make significant inroads in this figure. PIAB will however carry out a cost benefit analysis of the new system as against the system prior to the introduction of PIAB and this will indicate the reduction in the level of litigation.

The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents Governments from intervening directly in relation to premium levels. However it is expected that reduction in litigation costs in personal injury claims will lead to corresponding reductions in premium levels.