Written answers

Tuesday, 23 November 2010

Department of Social and Family Affairs

Proposed Legislation

9:00 am

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 76: To ask the Minister for Social Protection if he will provide the outcome of his discussions with insurance companies in respect of the suggestion of changing social welfare legislation to provide for the reimbursement to the Department by insurance companies of social welfare payments deducted from awards of special damages in respect of loss of earnings. [43861/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Deputy will be aware that social welfare legislation does not currently provide for reimbursement to the Department by insurance companies in cases where adjustments may have been made to special damages awards on foot of social welfare payments received by plaintiffs. As I indicated in a recent reply on this issue, preliminary work has been undertaken by the Department in relation to this matter. The issues involved are complex, since there could, for instance, be negative impacts on economic competitiveness and negative downstream costs for employers and employees in terms of increased insurance premia in respect of employer liability, public liability and transport cover. Against that background, the introduction of any changes in this area would necessitate extensive consultations with a wide range of interested parties, including not only representatives of the insurance industry, but also the legal profession and employers representatives amongst others, in order to assess adequately all of the possible implications and to comply with formal Regulatory Impact Assessment requirements.

In view of these wider potential implications, it is my intention to consult with my Government colleagues with a view to securing agreement on the most appropriate course of action in relation to this matter.

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