Written answers

Wednesday, 24 October 2007

Department of Enterprise, Trade and Employment

Insurance Industry

8:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 86: To ask the Minister for Enterprise, Trade and Employment the number of cases currently before the Personal Injuries Assessment Board; the number of cases for which rulings have been given since its inception; the number of these cases that have been referred to the courts for further action or appeal; the number of staff currently employed by the PIAB; the intended total number of staff to be employed by the PIAB; the date by which he expects the PIAB to be fully staffed; the date on which a review will be undertaken on staffing levels in the PIAB; and if he will make a statement on the matter. [25392/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Personal Injuries Assessment Board was established in April 2004 as part of the Government's insurance reform programme, with the aim of allowing certain classes of personal injury claim, where liability is uncontested, to be settled without the need for the costs associated with litigation. The threat of rising insurance costs at the time posed serious risks to Irish business and the economy generally.

Since its establishment the PIAB has successfully fulfilled its legal obligations: the PIAB is now assessing many claims three times faster and four times cheaper than under the old litigation system. To the end of Q2 2007, the PIAB had made actual savings to date of €51 million on awards totalling €228 million, when compared with the old, unwieldy, adversarial and litigation-based system. This is quite an achievement in such a short space of time, and can only be good news for accident victims, for business and for consumers generally who have seen, and should see further, reductions in their insurance premiums.

The PIAB has pared down the personal injury claims process in a wholly positive way. In 2003 it is estimated that the number of personal injury cases going through the Irish Courts system was in the region of 32,000 cases whereas the estimated figure for 2006 is 15,900 cases. The effects are felt throughout the Court system where valuable time has now been freed up to deal with cases that should more properly reside there.

At the end of September 2007 there were 4,815 cases with the PIAB in the 90-day "consent to process" period i.e. PIAB has received a claim and has issued formal notice to the responding party and is awaiting consent to process from that party. There were a further 6,325 cases in the nine-month statutory assessment process, where the responding party has indicated that liability is not contested and damages are being assessed.

Approximately 13,300 assessments have been made to date, 6,500 of these having been issued by the end of 2006. Of the assessments issued 7,533 have been accepted, 4,707 have been rejected and authorised to proceed to litigation, and responses are awaited on the balance.

Delivery costs are 4 times cheaper than under the old system

Average delivery costs at approx €1,383 flat fee equating to approx 7% as against old system of 46%, e.g. a €15,000 award in the old system would have attracted costs of an additional €7,500 approximately. Under the Personal Injuries Assessment Board these costs would be €1,350.

Some of the rejected assessments will have been resolved since PIAB involvement and others will proceed to the Courts. The PIAB would not be aware of the number of these cases which actually proceed to litigation, although it is believed that a significant proportion are settled outside of the Courts once an authorisation issues from the PIAB.

The Board currently employs 81 staff members (up from 53 in May 2006) and is in the process of recruiting to bring numbers towards the staffing level of 85 agreed with my Department. There are no plans at this time to further review staffing levels in the PIAB.

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