Harney publishes draft legislation on insurance

A draft of the Personal Injuries Assessment Board Bill which aims to reduce insurance costs has been published by the Tánaiste Ms Harney.

Addressing the Annual Conference of the Small Firms Association in Dublin Castle today, Ms Harney confirmed the draft legislation had been agreed by Cabinet at its meeting yesterday.

The Tánaiste said her political priority was addressing the high cost of insurance in Ireland.

"The cost and availability of insurance in Ireland is of major concern to business and I am happy to announce another crucial element of our programme to reform the industry," Ms Harney said.

"The text of the Bill will now be drafted as a matter of urgency and I hope, with the co-operation of the Oireachtais to have the legislation signed into law by the end of this year. This will mean that the PIAB can be up and running and hearing cases early in the new year," she added.

She said the legislation was intended to cut the cost of compensation particularly by reducing litigation costs. These costs can add more than 40 per cent to the cost of compensation, according to Ms Harney.

"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.

"The PIAB will also offer speedier assessments to the benefit of genuine claimants. Independent research has shown that claimants in Ireland wait 6 times longer than in the UK for negotiations to commence on personal injury claims," she said.

Ms Harney paid tribute to the work done by the interim Board of the PIAB. "In particular, the interim Board have made considerable advances in preparing a Book of Quantum which will, for the first time in Ireland, provide a guide to compensation for various categories of injury.

She said the aim of the Insurance Reform Programme, under which the PIAB was established, was to attract competition into the Irish insurance market.

Ms Harney said she expects a " quid pro quofrom the insurance industry in the form of reduced premia following the Government move on penalty points.

The Interim Board of the PAIB is chaired by Ms Dorothea Dowling. She is joined on the board by Senator Joe O'Toole, ICTU; Mr Tom Wall, ICTU; Mr Tom Noonan, IBEC; Mr Pat Healy, IIF; Mr Carmel Foley, Director of Consumer Affairs; Ms Mary O'Dea, Consumer Director IFSRA; Ms Frances Cooke, Revenue Solicitor; Prof Denis Cusack, Barrister-at-Law; Mr Chris Flood, Businessman; Mr Frank Cunneen, Chairman Health & Safety Authority and Mr Stephen Watkins, Secretary at the Department of Enterprise, Trade & Employment.