Dáil Éireann debate -
Wednesday, 2 Feb 1994

Vol. 438 No. 2

Written Answers. - Claims for Compensation.

Helen Keogh

Question:

19 Ms Keogh asked the Minister for Social Welfare if his attention has been drawn to the fact that some people in receipt of certain social welfare payments such as supplementary welfare allowance are claiming compensation for personal injuries, are being compensated for loss of income by way of special damages claims, and that this expenditure is not recoverable by his Department; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

Under existing provision certain social insurance benefits are taken into account in assessing damages in personal injuries actions. Section 75 of the Social Welfare (Consolidation) Act, 1993, provides that injury benefit payable in the five year period from the date of accrual of the cause of the action be taken into account in assessing such damages.

Section 237 of the 1993 Act contains a similar provision in respect of disability benefit, and invalidity pension. These arrangements are designed to ensure that people are not compensated twice for loss of earnings.

People who are involved in accidents and who have no entitlement to social welfare benefits can claim supplementary welfare allowance while they are unfit for work and pursuing compensation claims. There are no provisions in legislation which would allow supplementary welfare allowance paid in these circumstances to be taken into account in assessing compensation.

The recovery of social welfare payments from compensation awards would have implications for insurance costs and a study on the question of reducing the costs of motor insurance in 1990 concluded that a change in the present arrangements to enable social welfare payments to be recovered from awards would be costly to administer and would increase insurance costs. I am, however, reviewing the existing arrangements in the light of more recent developments.