IBEC slam PIAB ruling

A High Court ruling allowing workers to take legal advice over injury claims is a backward step, business chiefs claimed today.

Influential employers group, IBEC, said the decision was a setback to the good work done to cut legal bills and speed up the processing of claims.

Tony Briscoe, IBEC assistant director, said the premium-paying public would be left to stump up the costs of lengthy insurance claims.

Mr Justice McMenamin ruled in the High Court today the Personal Injuries Assessment Board Act of 2003 did not give the board the power to refuse to deal with solicitors.

“The decision represents a setback to the progress that had been made by the PIAB in reducing legal costs and improving the processing of claims,” said Tony Briscoe, IBEC Assistant Director.

“The purpose of the PIAB is to speed up the process of compensation, reduce delivery costs, particularly legal costs, and to provide transparency and communication with the claimant.

“Today’s decision runs contrary to these aims and can only be regarded as a blow to the consumer and to business.”

The court heard the right to legal representation and the lawyer-client relationship was established for the common good – to help guarantee equality in litigation for all.

Mr Justice McMenamin said the PIAB had no right to deal directly with claimants and ignore lawyers.

IBEC called for the PIAB to appeal and seek advice from the Attorney General on the matter.

Union bosses, however, claimed the ruling proved the system was inherently flawed.

Eamon Devoy, Technical Engineering and Electrical Union general secretary, claimed that if PIAB procedures had remained in place it would be harder for workers to bring and win cases.

“The priority in the PIAB system appears to be reduction in costs to insurance companies regardless of the cost to employees. It has shifted the balance totally away from the employee,” Mr Devoy said.

“The trade union movement initially welcomed the establishment of the PIAB, but in the light of these facts we urgently need to rethink our position in relation to workplace injuries.”

Micheal Martin, Enterprise Minister, said the primary objective to cut costs and speed up the processing of claims remained intact.

“The overhead cost and unnecessary delay are the two targets of the PIAB, resolution of which will represent a win-win solution for both claimants and premium paying policy holders, who ultimately bear the costs,” Mr Martin said.