Board set to cut insurance costs, says Harney

THE Government's insurance reform programme is on target to reduce insurance premia, Tánaiste Mary Harney said yesterday.

Publishing the Public Injuries Assessment Bill (PIAB) Ms Harney said the board, which aims to reduce the costs of delivering compensation by speeding up the claims process and eliminating the need for expensive legal fees, was a key element in reforming the insurance sector.

"By eliminating the need for litigation costs where legal issues are not in dispute, the PIAB will significantly reduce the cost of delivering compensation," Ms Harney said.

Under the chairmanship of Dorothea Dowling an interim PIAB was set up almost a year ago and is now in the process of recruiting its first chief executive.

A panel of independent medical examiners has already been established.

While initially the board will deal with employer liability cases, its remit will be extended to cover motor insurance and public liability by the middle of next year.

However, there is considerable opposition to the PIAB within legal circles with lawyers concerned over legal fees arguing that the board has no mechanism to allow defendants have legal representation.

The PIAB Bill is expected to be passed before the end of the year putting the board on a statutory footing for the beginning of 2004. The Cabinet formerly agreed the bill earlier this month.

Ms Harney also assured policy holders that the board was not being set up to cut the level of awards to claimants.