John Curran (Dublin Mid West, Fianna Fail)
Link to this: Individually | In context

Question 149: To ask the Minister for Enterprise, Trade and Employment the position regarding the progress being made by the Personal Injuries Assessment Board; and if changes or improvements are planned for the scheme. [33592/05]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The Personal Injuries Assessment Board, PIAB, was established by ministerial order on the 13 April 2004. From 1 June 2004 all personal injury claims arising from workplace accidents, where an employee is seeking compensation from his-her employer, must be referred to the Personal Injuries Assessment Board before legal proceedings are issued. From 22 July 2004 all motor liability and public liability claims must also be referred to the Personal Injuries Assessment Board before legal proceedings are issued.

The PIAB's core objectives are to: assess the amount of compensation in personal injury cases; to reduce the litigation costs associated with delivering personal injury compensation; and to reduce the amount of time it takes to finalise a personal injury compensation claim.

Awards in PIAB are made by reference to a book of quantum, which was published by PIAB on 2 June 2004. In producing the book of quantum it was not intended policy to either reduce or increase personal injury compensation levels but merely to reflect, in a guide, what the current level of damages is for particular types of injuries in this country. PIAB utilise an outsourced service centre, SWS, based in Clonakilty, Cork, to assist injured parties in completion of their claim submissions and ensure a comprehensive, fair and independent service is provided. Victims of personal injury accidents may deal directly with PIAB through their helpline facility, open Mondays to Saturdays between 8 a.m. and 8 p.m. on lo-call 1890 829 121, or through PIAB's website www.piab.ie.

PIAB concluded its first assessments during the first quarter of 2005. In relation to volumes, PIAB expects to assess in the region of 10,000 cases per annum when fully operational. Some 15,500 applications have been received to date from victims of accidents. Of these claims 5,500 have either been settled up-front between parties following initial contact with PIAB, or claim papers are being finalised by claimants. The remaining 10,000 claims are moving through the nine month assessment process. Three out of every four PIAB assessments have been accepted to date. Total compensation awarded so far amounts to €3.74 million.

Assessments to date have been delivered approximately three times faster and at a delivery charge four times cheaper than through the litigation process. This is very significant considering that in 2004, where an estimated €965 million was paid out in compensation to personal injury victims, litigation costs of an estimated €444 million were incurred in the delivery of this compensation to the victims. As well as being a major benefit to victims of accidents this is a significant reduction in the cost of delivery of compensation and hence facilitates reductions in liability insurance premia.

It is also worthy of note the impact that PIAB is having on the courts systems with new personal injury case volumes in the High Court dropping from 15,293 in 2004 to just over 400 from January to end-September of this year.

In relation to the judicial review against the policy of the PIAB of dealing directly with clients rather than through their solicitors, the High Court made its ruling on 25 January 2005. The judge held that the PIAB policy of dealing directly with clients rather than through solicitors was ultra vires the powers conferred on the board by section 7 of the Personal Injuries Assessment Board Act. He ruled that there is no specific power set out in the Act to allow the board to adopt the policy at issue. Costs were awarded against the PIAB. On 28 April 2005, the PIAB gave notice that it was making an appeal to the Supreme Court in relation to the judgment of the High Court and the order for costs. No date has as yet been set. Pending the outcome of the appeal the PIAB is dealing with legal representatives in accordance with the ruling of the High Court. I am very pleased with the operation of PIAB to date and no changes are planned at this point in time.