Compo assessment body ‘must be set up’

NEW rules banning the “no win no fee” advertising by solicitors must not stop the Personal Injuries Assessment Board being set up, a consumer watchdog warned yesterday.

The move by the Law Society to outlaw advertising for compensation cases was welcomed by the Consumers Association of Ireland, but their chief executive, Dermott Jewell, warned: "The Tánaiste must still push ahead with the Personal Injuries Assessment Board if we are to really succeed in cutting the price of insurance."

Lawyers earned almost £½bn from processing compensation cases last year. The Irish Insurance Federation paid out 440 million in legal fees for injury compensation. And the Motor Insurance Advisory Board review earlier this year revealed that lawyers' fees accounted for over 40% of the total cost of claims. This prompted Mary Harney to announce her intention to set up a Personal Injuries Assessment Board (PIAB) on an interim basis in October to help cut legal fees in half.

The Consumers Association of Ireland believes the outlawing of "no foal no fee" advertising is needed in the battle to bring down insurance costs.

"But it is not enough; the PIAB is needed to cut legal fees, but the insurance industry must also pass this savings onto the consumers," Mr Jewell said.

Ms Harney is fully committed to setting up the PIAB on an interim basis, her spokeswoman said."It is on target to be set up and running by the end of October," said the spokesman.

The new rules banning solicitors from advertising personal injuries cases were drawn up by the Law Society following the passage of the 2002 Solicitors (Amendment) Act through the Oireachtas earlier this year.

It restricted solicitors advertising but the detailed regulations were just drawn up by the Law Society's advertising task force. They have now been sent to Justice Minister Michael McDowell for ratification.

The legislation was prompted by the proliferation of solicitors' advertisements especially those aimed at potential personal injury claimants since the ban on solicitors' advertising was lifted in 1988.

But Law Society director general Ken Murphy said advertising was forced on a reluctant profession and only a minority of the profession availed of it.

"The great majority regret that it was ever allowed, as it has reduced the esteem in which the solicitors' profession was held by the public generally," Mr Murphy said.

New rules

* They cannot use phrases like "no win, no fee" or "most cases settled out of court".

Cartoons showing hypothetical accidents, at work or elsewhere, are also banned.

* They cannot place ads near hospitals, cemeteries or crematoria or on bus shelters near these places.

* Their ads cannot say they specialise in personal injury cases or that accidents produce compensation.