Written answers

Tuesday, 10 July 2018

Department of Jobs, Enterprise and Innovation

Proposed Legislation

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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83. To ask the Minister for Jobs, Enterprise and Innovation the position regarding the introduction of legislation to enhance the powers of the Personal Injuries Assessment Board in view of the recommendation in the cost of motor insurance report; and if she will make a statement on the matter. [30634/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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On the 27th June 2017, the Government gave approval to the drafting of the Personal Injuries Board (PIAB) (Amendment) Bill along the lines of the General Scheme.  The purpose of the Bill is to amend the existing legislation to strengthen PIAB in terms of operational issues to ensure greater compliance with the PIAB process and encourage more claims to be settled through the PIAB model. 

The Board facilitates objective, fair and transparent assessments of damages in personal injury cases at a low delivery cost and in timely non-adversarial manner that is a far shorter timeframe than possible through litigation which often takes several years.

According to PIAB data 33,114 new personal injury claims were submitted to PIAB in 2017.  PIAB processing costs were 6.2% of awards – this is a fraction of the possible costs claims being handled required litigation. The average time to assess a personal injury claim was 7.3 months compared to several years if litigation is involved.

The average PIAB award in 2017 was €24,879. Award values vary depending on the nature and severity of cases received. This demonstrates that the PIAB model continues to deliver major benefits, by providing a low-cost, quick and fair option in injury compensation. 

The General Scheme addresses issues highlighted in submissions made to the public consultation held in 2014, by the then Minister, on the operation of the Personal Injuries Assessment Board Acts 2003 and 2007. Issues highlighted by the Cost of Insurance Working Group Report on the Cost of Motor Insurance published in January 2017 and the Report of the Rising Costs of Motor Insurance published by the Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach are also addressed.

This is a technical and complex piece of legislation and it required careful consideration during drafting in conjunction with the Office of the Attorney General.  

Drafting of the Bill has been finalised by the Office of the Parliamentary Counsel and I will shortly seek Government approval for publication of the Bill.

The PIAB model is a positive one for society as a whole as it delivers compensation more quickly, with lower costs.  Therefore, encouraging more claimants to finalise their cases through the PIAB model rather than resorting to litigation should lead to cost savings in the claims environment that will benefit consumers and businesses.

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