Battle looms over compo costs
A spokesman for Mary Harney said she agreed with the Law Society there should be no reduction in the level of compensation paid to victims.
However, he said the new Personal Injuries Assesment Board (PIAB) was intent on cutting costs associated with processing claims. Legal fees account for much of these compensation costs.
The spokesman made the comment after the Law Society said victims should have the right to be represented at oral hearings carried out by the PIAB and the State should cover the cost of such representation.
The Law Society expressed fears that the PIAB, which the State plans to set up later this month, will only add another layer of delay and cost up to €30m.
The lawyers’ body has drawn up 50 recommendations they say will speed up the system and make it more cost-effective without the need for the PIAB.
Law Society director general Kevin Murphy said regulations banning advertising by lawyers specialising in personal injury claims will come into force on November 1. He said most Law Society members feel this type of advertising should never have been allowed. The society is also calling for fraudulent personal injury claims to be prosecuted.
And the society believes the jurisdiction of the circuit court in dealing with personal injury claims should be raised from €30,000 to €75,000.
Mr Murphy said the Society was concerned the PIAB would be biased against claimants. They also felt either party to a claim should be free to reject the PIAB’s assessment and proceed to court.
Mr Murphy referred to the report of business consultant Mr Des Peelo, who concluded the PIAB would need a staff of 305 and cost €38m to set up, suggesting that such a plan was simplistic and would not work.
Mr Murphy said the PIAB should not be introduced unless there was an absolute guarantee from the insurance industry that a significant reduction in premiums would follow.
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