Dáil Éireann Debate, Thursday - 12 October 2023
18. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment if he is satisfied that Personal Injuries Assessment Board (PIAB) is providing a much-needed timely and cost-effective service to the public in assessing personal injury insurance claims. [44202/23]
Amharc ar fhreagraThe Programme for Government set down a commitment to enhance and reform PIAB. The overarching aim is to increase the number of claims settled through the Board and without the need for litigation. To meet this commitment the Personal Injuries Resolution Board (PIRB) Act 2022 was signed into law by the President on 13 December 2022.
The reform and enhancement of the Board through the PIRB Act 2022 should encourage more claimants and respondents to avail of the Board’s model to settle injury claims more quickly and less costly and contribute to reductions in insurance premiums.
The Act is being commenced over three phases this year. Phase 1 of the PIRB Act commenced this year on 13 February, phase 2 on 4 September and it is intended to commence phase 3 with all the elements relating to the introduction of mediation as a new service and the remaining provisions of the Act before year end.
The Central Bank’s National Claims Information Database (NCID) Reports show the savings in time and costs when claims are settled through PIAB. The Bank’s NCID Private Motor Insurance Mid-Year Report 1 published in April 2023 shows that the time taken to resolve claims through litigation is more than 2 years greater than claims settled through the Board.
The Report also shows that for claims of less than €100,000 in H1 2022 the average legal costs associated with settling claims through litigation was €17,813 compared to legal costs under PIAB of €1,156.
The new Personal Injuries Guidelines came into effect on the 24th of April 2021, which has resulted in the average PIAB award decreasing by 34% in 2022 compared to 2020 pre-guidelines. Both the Courts and PIAB must have regard to the Personal Injuries Guidelines when assessing awards which reinforces the benefits of the quicker and less costly PIAB process.
Following an initial decline in acceptance rates for PIAB awards post the introduction of the Personal Injuries Guidelines in April 2021 to 36%, acceptance rates have been increasing with the latest data showing they are holding at 48% and are close to the pre-guidelines acceptance rate of 51% in 2020.
