The Tánaiste yesterday announced the publication of her eagerly-awaited draft of a Bill setting up the Personal Injuries Assessment Board (PIAB) on a statutory basis.
The board, which was set up on an interim basis last November, will assess the damages payable to people injured at work, but the Bill provides for its remit to be extended later to injuries arising from motor accidents or public liability.
Ms Harney said she expected the legislation to be enacted before the end of the year, and the PIAB to be making assessments early next year. Speaking at a conference of the Small Firms Association, she said this had been her number one political priority over the past 11 months.
She said that the PIAB would cut the cost of delivering compensation, and would offer a lower cost and speedier means of finalising personal injury claims than the current court-based system.
"Independent research has shown that claimants in Ireland wait six times longer than in the UK for negotiations to commence on personal injury claims," she said. "There has for some time been a public demand for an alternative to the existing litigation system."
She said the interim board had already made considerable progress in preparing a Book of Quantum, which would set out guideline awards for various kinds of injuries.
The PIAB will only make assessments where liability is not an issue, but all personal injuries claims must first go to it, whether liability is contested or not. In cases where liability is contested, the PIAB will not proceed with an assessment, and will issue a Release Certificate, allowing the case to proceed to court.
A Release Certificate will also be issued if either or both parties reject the PIAB assessment. Following the issuing of this certificate, proceedings must be issued within six months. The Statute of Limitations will not apply for the period the case is under consideration by the PIAB.
The PIAB will be empowered to seek documents from the claimant, and from Government Departments like the Department of Social, Community and Family Affairs or the Revenue Commissioners, which would help it in making an assessment.
The draft heads of the Bill also provide for assessors employed by the PIAB to quantify appropriate compensation. They will have the assistance of appropriate experts. These awards will be based on the awards made by the courts for similar injuries. There is also provision for the claimant to claim expenses.
However, this does not extend to legal expenses. "It will be a paper-based system. There will be no lawyers," Ms Harney said. "You do not need a judge to decide what a broken leg is worth. You need a judge to decide who's responsible."
The draft also provides for lawyers employed by the PIAB directly to be exempt from the rules of the Law Society and the Bar Council. Barristers may be retained for court applications to protect minors and other vulnerable claimants.
When the PIAB makes an assessment, and it is accepted, it will issue an Order to Pay, which will have the same force as a court order.
The PIAB will be funded by fees from the users of the service, with any shortfall met from Exchequer funds subject to agreement with the Minister for Finance. The Bill provides for fees to be charged to both claimants and respondents, but the explanatory note states that funding would be primarily payable by the respondent (effectively the insurer). The level of fees will be decided by the PIAB.
The Bill spells out the composition of the board and provisions for the remuneration of its members and staff, and it is answerable to the Oireachtas.