The draft scheme of a Bill setting up the Personal Injuries Assessment Board has been warmly welcomed by employers' organisations and the insurance industry. However, lawyers' bodies continued to express their doubts.
"It's a very important day for small businesses," said Mr Pat Delaney, the director of the Small Firms Association.
He pointed out that 67 firms had had to close recently because of insurance costs, with a loss of 1,900 jobs, and many firms were now trading without insurance. "This means that they can't get State work, can't be audited, and can't go to a financial institution. Their directors are personally at risk if there is an injury," he said. He expected the PIAB, and other proposals aimed at reducing insurance fraud, would make the market more competitive and lead to reduced premiums.
The employers' organisation, IBEC, also welcomed the proposed Bill. "We have been looking for it since 1999," said Mr Tony Briscoe, its assistant director, adding that it was also necessary to introduce measures to eliminate fraudulent and exaggerated claims.
The ICTU has also welcomed it in principle. But the assistant general secretary, Mr John Wall, said there were issues it was raising within PIAB. The draft legislation was also welcomed by the Irish Insurance Federation and by the AXA insurance company. The IIF chief executive, Mr Michael Kemp, said: "If the PIAB delivers all its potential, then unnecessary delivery costs should be eliminated once and for all." He added that reduced premiums were absolutely contingent on continued reduction in claims costs and frequency.
However, the Law Society and the Bar Council expressed misgivings. "There remains a credibility question over the PIAB in the absence both of a cost-benefit analysis and a guarantee in advance from the insurers that premiums will in fact reduce," said Mr Ken Murphy, director of the Law Society.
"However, our main concern will be to ensure a fair balance will exist under the new system between the interests of accident victims, which tend to be ignored in this debate, and those who cause the accidents." The Bar Council also deplored the absence of a cost-benefit analysis and said it served to isolate claimants. "What is set out in the heads of the Bill is to the advantage of the respondents," said Mr Conor Maguire SC, chairman of the Bar Council.
"The claimant is obliged to go to the PIAB without any protection. How can claimants put across all the problems they've experienced on the basis of written medical reports?"
He also said a further advantage to insurers was that they could withdraw their admission of liability to the PIAB if an award was not accepted.