9th February 2022
Bill aims to facilitate an increase in the number of personal injury claims that may be resolved through the Board’s process and without recourse to litigation
The Minister of State for Trade Promotion, Digital and Company Regulation Robert Troy TD has received agreement from Government to commence drafting of the Personal Injuries Resolution Board Bill.
The General Scheme relates to the Programme for Government commitment to enhance and reform the Personal Injuries Assessment Board (PIAB) and commitments in the Action Plan for Insurance Reform.
Announcing Government approval of the General Scheme, Minister of State for Trade Promotion, Digital and Company Regulation Robert Troy TD said:
“Insurance reform is a continued priority for Government and as Minister responsible for PIAB, I am committed to delivering effective and impactful reform of the PIAB model that will reduce the cost of litigation and ultimately premiums.
“We know PIAB provides a time and cost-efficient alternative to litigating personal injury claims. The proposals approved by Government this week focus on enhancing the PIAB model to not only encourage more claimants and respondents to avail of its service but crucially to have their claims resolved also, thereby reducing the need to go to court.”
The General Scheme proposes to amend the Personal Injuries Assessment Board Act 2003-2019 to increase the number of personal injury claims settled through PIAB and to avoid the expense and time associated with litigation. It provides that:
- PIAB will offer mediation as a means of resolving a claim.
- PIAB will retain claims of a wholly psychological nature.
- PIAB will have additional time to assess claims where an injury is yet to settle rather than releasing to litigation.
- PIAB will seek proof of identity on application and disclose information to An Garda Síochána to reduce fraud.
- The Court’s discretion regarding costs in litigation will be tightened.
- PIAB will deepen its analysis and public information roles.
Given the proposals extend the Board’s remit and give it new statutory functions to resolve personal injury claims the General Scheme also provides for a change of name to the Personal Injuries Resolution Board.
The Minister continued:
“In developing these proposals, I met regularly with PIAB and a range of representative bodies to assess the role of PIAB itself and address how best to enhance and reform the Agency. I also closely considered the wide range of proposals submitted to the public consultation I launched last year and the suggestions raised by stakeholders in my meetings with them.
“While there is no one simple solution to resolve the high cost of insurance in Ireland, it is my ambition that the new PIRB model will have more cases resolved through it in a timely, cost-effective way. I look forward to engaging with stakeholders as we progress to drafting and through the legislative process to ensure our reforms are robust and effective.”
ENDS
NOTES TO EDITORS
General Scheme for the Personal Injuries Resolution Board Bill 2022 accompanied by a Report on Public Consultation
Insurance Reform
The Programme for Government contains commitments which together clearly demonstrate the Government’s ambitions for real reform of insurance to deliver an insurance system which is both affordable and reliable and one which underpins a vibrant economy.
The Sub-Group on Insurance Reform under the Cabinet Committee on Economic Recovery & Investment, chaired by the Tánaiste, with membership from Ministers and Ministers of State, is tasked with driving insurance reform on a cross-governmental approach.
The ‘Action Plan for Insurance Reform’ was launched on the December 8, 2020. The Action Plan sets out 66 actions for reform to bring down the costs for consumers and business and to introduce more competition into the market.
In line with Action 19 of the Action Plan for Insurance Reform, the Minister has considered legislative proposals to enhance and reform PIAB and government approval has been given to draft the Personal Injuries Resolution Board Bill.
About PIAB
PIAB was established in April 2004 to fairly, promptly, and transparently compensate the victims of accidents involving personal injuries in a cost-effective manner.
PIAB independently assesses claims for compensation arising from personal injuries sustained as a result of a motor, workplace, or public liability incident. Under the Personal Injuries Assessment Board Acts 2003-2019, all personal injury claims, with certain exceptions, such as medical negligence cases, must be submitted to PIAB unless they are settled by the parties involved at an early stage.
Through PIAB certain classes of personal injury claim, where liability is uncontested, can be settled without the need for many of the costs associated with litigation, which can contribute to the high cost of settling such claims. The Central Bank’s reporting under the National Claims Information Database and most recently the Bank’s third private motor insurance report published in November 2021 highlights the benefits of the Board. The legal costs associated with settling claims through litigation were €16,064 compared to legal costs under the Board of only €841.The time taken to resolve claims through litigation is 4.2 years while claims settled through the Board took 2.3 years.
The Board does not make judgement on the issue of liability but assesses claims with reference to the Personal Injuries Guidelines. The Guidelines were adopted by the Judicial Council on March 6, 2021 and apply from April 24, 2021. The Board and the Courts must have regard to the new Guidelines and are required to explain where they deviate from the guidelines. The Board published a report on average award levels since the introduction of the Personal Injuries Guidelines in October 2021. The average general damages awarded by the Board in 2021 under the Guidelines is €11,808 a 46% decrease compared with 2020. The average total award under the Guidelines is €14,223 a 40% decrease compared with 2020. Of the 2,649 cases assessed by the Board under the Guidelines, 71% of awards are now €15,000 or less compared to 30% of awards made by the Board in 2020.
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