Vol. 564 No. 5
105 Mr. B. Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals, if any, she has to reduce substantially the medical and legal costs associated with insurance claims and settlements; and if she will make a statement on the matter. [9955/03]
A comprehensive set of measures is contained in An Agreed Programme for Government the underlying purpose of which is to bring about an improvement in the functioning of the insurance market and in the system itself. In this context I announced last October a comprehensive programme for the fundamental reform of the insurance market. This includes publication of the report of the Personal Injuries Assessment Board implementation group, establishment of the PIAB on an interim basis and priority drafting of legislation to establish the PIAB on a statutory footing. The implementation group report was published last October and I appointed the Chairperson and ordinary members of the interim PIAB on 27 November. Legislation to establish the PIAB on a statutory basis is currently being prepared.
It is generally acknowledged that the medical and legal costs associated with the settlement of insurance claims are disproportionately high. The PIAB is being established in order to bring about a reduction in the delivery costs of compensation in personal injuries cases. It will provide an alternative avenue through which claimants can obtain an assessment of the compensation appropriate to their particular injury, outside of the legal adversarial system.
106 Mr. B. Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in view of the serious problems caused by excessive insurance costs, she will outline the progress to date in implementing the recommendations of the Motor Insurance Advisory Board; and if she will make a statement on the matter. [9957/03]
I am very much aware of the high cost of insurance in the State and I am concerned about the serious problems this is causing for many businesses and individuals.
On 25 October last I announced my programme for fundamental insurance reform. The programme reflects the commitments given in An Agreed Programme for Government and comprises a comprehensive set of inter-related measures designed to improve the functioning of the insurance market. The key measures include: establishment of a ministerial committee, chaired by myself, to oversee implementation of the reform programme, including the 67 recommendations contained in the Motor Insurance Advisory Board report. This committee meets on a monthly basis; publication of the action plan to give effect to the MIAB recommendations within a target time frame This report was published last October. A number of the recommendations have already been implemented, some by the insurance industry and some by the relevant Departments. Progress on the other recommendations is continuing; publication of the report of the implementation group on the PIAB. This report was published last October; establishment of the PIAB on an interim basis. The chairman and ordinary members of the interim PIAB were appointed on 27 November 2002. Agreement on the initial drafting of legislation to put PIAB on a statutory basis has been reached and the general scheme of the Bill for the establishment of the PIAB on a statutory basis is intended to be published around the summer of 2003, after Government has given approval for drafting.
