Michael McGrath (Cork South Central, Fianna Fail)
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137. To ask the Minister for Jobs, Enterprise and Innovation the respondent fee income and the respondent fee income per award accepted by the Personal Injuries Assessment Board for the calendar year 2015; if he has assessed if the level of respondent fees is justified, given the operating costs and net assets of the board; if he has assessed the direct and indirect contribution of the board's respondent fees to insurance costs; and if he will make a statement on the matter. [3802/16]

Richard Bruton (Dublin North Central, Fine Gael)
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The Personal Injuries Assessment Board (PIAB) operates as a self-funding State Agency through income generated from the fees charged to claimants and respondents. The amount of fees received by the PIAB during 2015 from claimants was €1,474,842 and from respondents was €10,281,622. Respondents’ fees are levied when the respondent consents to an assessment being made by the PIAB. Where both parties accept the assessment, the matter is resolved without recourse to litigation, resulting in legally enforceable awards on a par with the Courts but with a lower administration cost arising. Section 22 of the Personal Injuries Assessment Board Act 2003 provides me as Minister with the power to impose charges in respect of applications made under the Act. Steps have been taken to reduce the level of fees for claimants and respondents and the level of fees are kept under review. In late 2010, PIAB recommended a reduction in the fees and this was accepted by the then Minister, and a reduction from €1,050 to €850 for respondents, and from €50 to €45 for claimants, was applied with effect from 1 February 2011.

In December 2012, I further reduced the fee to the respondent from €850 to €600 with effect from 1 January 2013, representing a 29% reduction on 2012 levels.

With the exception of motor insurance which falls under the remit of the Minister for Transport, Tourism and Sport, the Minister for Finance has policy responsibility for insurance. The sector is regulated by the Central Bank. I have no direct policy responsibility for insurance.

The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. As a matter of course, insurance companies carry out reviews of the risks against which they are prepared to provide insurance and they consider these risks when determining their policies, including insurance premiums. There are many factors that influence the cost of insurance and some of the more significant factors include the frequency and scale of claims, the cost of claims and the operation of the insurance market.

I am aware that my colleague Minister Noonan has asked his Departmental officials to examine the factors which contribute to the increasing costs of insurance and this work is part of an overall review of the insurance sector which the Department of Finance are undertaking in consultation with the Central Bank and other Departments and agencies.