The Irish Insurance Federation (IIF) has proposed that the forthcoming Personal Injuries Assessment Board (PIAB) should replace the Circuit Court in all personal injury cases, recommending that it should have a jurisdiction level of €100,000.

The IIF has also suggested that the PIAB should deal with all motor, employer's liability and public liability claims, giving it a much wider jurisdiction than had previously been envisaged.

The recommendations, which are contained within an IIF consultation paper, have been greeted with circumspection by the Law Society, which argues that the first step to establishing the PIAB should be a commitment on the part of the insurance industry to reduce insurance premiums.

The IIF argues that if the Board was established according to its guidelines, up to €220 million could be saved in legal costs every year. Last year, the total cost of compensation claims was €1.05 billion, with an additional €440 million spent on legal services.

Law Society director general Mr Ken Murphy expressed particular doubts about the PIAB replacing the Circuit Court in personal injury claims.

"It would infringe and violate the constitutional right of access to the courts of justice," he said, suggesting that such a change could require a constitutional amendment.

The IIF is also calling for a book of quantum to be drawn up so that awards in personal injury cases can be defined and consistent.

"In the absence of a book of quantum, which is binding on both the courts and the PIAB, there is no guarantee that the PIAB will be effective," the federation argues.

Mr Murphy agreed yesterday that consistency in awards was desirable but said that a book of quantum would require much consideration before becoming acceptable.

He also agreed with the IIF's suggestion that rehabilitation should be a factor in assessments, whereby if rehabilitation was offered to a claimant and refused, the PIAB could take that into account. "That seems to be a sensible proposal," he said.

The IIF's consultation paper, which has been drawn up after consultation with all non-life IIF members, is currently being considered by the Minister for Enterprise Trade and Employment, Ms Harney, and the Minister for Justice, Mr McDowell.