Insurance falls expected after PIAB publication

Further decreases in insurance premiums and new entrants into the Irish insurance market are expected following the publication of the Personal Injuries Assessment Board Bill, 2003.

The Bill, when enacted, will provide for the establishment of the PIAB on a statutory footing according to Minister for Enterprise, Trade & Employment, Mary Harney today.

It is hoped the PIAB will reduce the cost of delivering compensation by eliminating the need for expensive legal fees and by providing a speedier means of finalising personal injury assessments for genuine claimants rather than the current court based system.

The establishment of PIAB is a core aspect of the Government's wider Insurance Reform Programme, which is overseen by a Ministerial Committee chaired by the Tánaiste.

It will be operational early in the New Year and will deal initially with employer liability cases.

Its remit will be extended to cover cases involving motor accidents and public liability by mid-year.

The PIAB will also seek to deal with cases within specified time limits subject to certain conditions.

The cost will be covered by fees levied on respondents on a case by case basis reflective of the actual complexity and work involved.

Fees will be set with a view to PIAB breaking even financially.

Speaking today, Mary Harney said: "Independent research has shown that claimants in Ireland wait six times longer than in the UK for negotiations to commence on personal injury claims.

"There has for some time been a public demand for an alternative to the existing litigation system."

In the past week, three major insurance companies have indicated their intention to reduce insurance premiums as a result of improved claims experience.

"I say to the insurance industry we are doing our part and we expect you to do yours," Harney concluded.