Expect premiums to drop, says Board

CONSUMERS should expect insurance premiums to fall further, according to the head of the Personal Injuries Assessment Board (PIAB).

Dorothea Dowling says the board has succeeded in reducing the cost of compensation claims, which should mean savings being passed back to consumers.

The PIAB, set up to deal with employer and public liability claims in a bid to reduce spiralling insurance costs, claimed it has been a success. Over the past two years insurance costs have fallen by 24%.

It said accident victims are still getting the same levels of compensation as they would in the courts, but quicker and at cheaper cost.

In its first year, the PIAB awarded €2.7 million in compensation. The overall costs in these cases amounted to €185,000. If they had been dealt with in the courts, the legal bills would have been €1m more.

The PIAB aims to keep the costs of claims to 10% compared to the average legal costs of 46% when cases move through the courts. The board said it is aiming to deliver the compensation within nine months of a claim being lodged.

According to figures released by the board, it is reviewing 13,000 cases. Settlements have been reached in 2,000, though no financial figures were revealed.

A further 6,000 are being processed, while the rest have returned to the courts because of disputes of liability and rejection of awards.

The number of personal injury claims lodged in the High Court this year had fallen to 300 compared to more than 15,000 in 2004.

The board said it could save tens of millions of euro in costs every year. If it handled 15,000 cases a year, the savings would be €61m.

Ms Dowling also confirmed a bid by solicitors to block the PIAB from dealing directly with the public.

In January the High Court ruled the PIAB had no legal authority to deal with victims without the presence of a solicitor. Although individuals do not need legal representation when lodging a claim with the PIAB, more than half of those contacting the body have engaged solicitors. The Law Society claimed the board is "anti-solicitor."

A hearing of the appeal is expected in the coming months.

Employers group IBEC yesterday said the public and businesses have benefited from the board.