Board aims to cut insurance costs
However, the Tánaiste refused to comment on the delays in implementing the board. “After 20 years of debating the matter, whether it’s six months late or not is not the issue. The fact is that we are going to have a radically reformed way of dealing with claims,” she said.
Addressing the Small Firms Association yesterday, Ms Harney said it was widely accepted that the high cost of insurance could be attributed to litigation costs in excess of 40% the cost of compensation. The aim of the PIAB is to eliminate the need for litigation costs where legal issues are not in dispute in a bid to significantly reduce the cost of insurance payouts and costs.
The establishment of the PIAB forms a crucial part of the Government’s Insurance Reform Programme, which is overseen by a Cabinet committee chaired by the Tánaiste. Ms Harney said her department was working in collaboration with the Departments of Justice and Transport to implement the legislation and measures required to get the PIAB up and running.
“The three ministers with responsibility in this area are working together in a Cabinet sub-committee and we are determined by the end of this year we will have the legislative proposals in place; we will have a reformed market in Ireland and hopefully, we will have new players in Ireland offering insurance premia on a much more reduced basis,” she said.
While the Department of Justice was close to finalising legislation required to speed up and streamline the court process, and the Department of Transport was implementing measures to reduce speeding, the Tánaiste said the Cabinet had approved draft legislation for the board on Tuesday.
Following Cabinet approval Ms Harney said she hoped to have the legislation signed into law by the end of this year and underlined that tackling the high cost of insurance was her number one political priority.
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