I move:
"That Seanad Éireann:
– Acknowledges that the price of insurance is one of the main costs facing both consumers and businesses today;
– Notes that on its return to office in June 2002 the Government set out a comprehensive programme to reform the insurance market and a clear path for the achievement of those reforms;
– Commends the Government for giving such a high priority to insurance reform in its legislative programme;
– Welcomes the fact that the Personal Injuries Assessment Board (PIAB) has been established on an interim basis;
– Notes that in May 2003 the Government approved the priority drafting and general scheme of the Bill to establish the PIAB on a statutory basis and that it is planned to have this Bill enacted before the end of the year ensuring that the PIAB will be operating and hearing cases early in 2004;
– Notes also that another proposal for legislation entitled the Civil Liability and Courts Bill is being prepared by the Minister for Justice, Equality and Law Reform which will reform the law on personal injury actions and give effect to several recommendations of the Motor Insurance Advisory Board;
– Supports the Government's intention to progress the Civil Liability and Courts Bill in parallel with the legislation on the PIAB so that both come into effect at the beginning of 2004;
– Commends the Civil Liability and Courts Bill for containing a number of very significant reforming provisions in particular the provision that will introduce a requirement for a person to swear an affidavit in order to verify their pleadings in a case so that if a person swears falsely they will be guilty of an offence;
– Welcomes the Civil Liability and Courts Bill which will provide that if any element of a claim before a court is made in bad faith the whole claim will fail, subject to appropriate safeguards – this provision represents a determined effort on the part of the Government to crack down on fraudulent claims;
– Acknowledges that this legislation is a commendable effort by the Government designed to eliminate fraud and reduce the costs of dealing with genuine claims;
– Recognises that such legislation must be complemented by vigorous action to reduce the incidence and severity of accidents, particularly road accidents;
– Welcomes the fact that the penalty points system, originally introduced in respect of speeding offences, has been extended and will be progressively extended to cover a very wide range of motoring offences;
– Accepts the penalty point's regime is having an impact on driver behaviour and is helping to reduce accidents, injuries and fatalities on our roads;
– Supports the Government in its further efforts to reform significantly the Irish insurance market and to ensure that the factors giving rise to high premiums are being addressed as there is scope in the market for both premiums to fall and profits to rise; and
– Recognises the importance the Government attaches to the attraction of new entrants into the market and supports the ongoing initiative of the Tánaiste in meeting a number of potential new players in the insurance market during the coming months and to ensure that they are aware of the reforms which are taking place and the impact which they will have on the profitability of the sector."
I welcome the Tánaiste to the House and compliment her on the excellent work to date on the insurance industry. This is an excellent motion and is moved on behalf of the Fianna Fáil party. I hope the House will unanimously agree the motion. Since the Government returned to office in June 2002 it has set out a comprehensive programme and given priority to the insurance industry and significant progress has been achieved. The Tánaiste has given the matter the priority it deserves. One of the most pressing issues is the establishment of the Personal Injuries Assessment Board. This is an innovative development but it has not received great support from the Law Library which has put up a very forceful case against the establishment of the PIAB. The Tánaiste, who is a very determined Minister, will ensure this comes about. Dorothea Dowling, the interim chairman of the PIAB has addressed this issue at the Joint Committee on Enterprise and Small Business. She outlined to the committee the benefits of the Personal Injuries Assessment Board. In the report prepared by the Joint Committee on Enterprise and Small Business and published in July 2003, the committee fully endorsed the establishment of the PIAB. The insurance industry in general also welcomes this development.
There has been significant opposition from the Law Library to the establishment of this board as it believes it will affect its members' involvement in the settlement of claims. Bearing in mind that in many cases 40% of damages in an insurance settlement go directly to the legal profession it is obvious that major improvement can take place. There are significant vested interests involved in this issue and they have mounted a strong rearguard action. I have been lobbied by solicitors in County Roscommon who have put forward a case against the establishment of the PIAB. I believe that in the long run they will accept its establishment which hopefully will take place in January 2004.
I ask the Tánaiste to give the House an outline of progress on the legislation. At a meeting of the Joint Committee on Enterprise and Small Business it was proposed that priority be given to the establishment of this board as quickly as possible on a full and statutory basis. It is hoped the PIAB will extend from personal injuries into the area of motor insurance and claims. We believe it will expedite the settlement of claims in a fair and balanced manner and will ensure the cost of insurance comes down.
We have received many submissions from the insurance industry. Contrary to what was outlined to the committee we discovered that enormous profits were being made by the insurance industry. As the Tánaiste is aware competition in the market is very limited. I hope the development of the PIAB will attract insurance companies from the European Union to the relatively small Irish market. The profits made by the companies trading in this market are very large. I hope the Tánaiste will be in a position to outline, although not necessarily this evening, if there is a possibility that large insurance companies in the EU could provide an on-line service to individuals, without the necessity of them having a physical presence in the State, particularly given the cost of public liability insurance to small industries.
With her background in labour affairs, the Tánaiste is aware of the effect that insurance has on the maintenance and creation of employment. Claims are no longer settled lightly by companies. They now fight back and vigorously contest claims. The Tánaiste's colleague, the Minister for Justice, Equality and Law Reform, Deputy McDowell, proposed changes to the judicial system in regard to the settlement of claims, particularly in regard to perjury. Heretofore there was no follow up when people went to court to make false claims, which amounted to daylight robbery. The Minister for Justice, Equality and Law Reform stated his intention to strengthen the law in this regard. I am confident that he will do so and that the legislation will come forward as quickly as possible. I am anxious that this is done. Although there is a tight schedule between now and the end of term, it is time for the necessary legislative changes to be introduced.
The innovations proposed in regard to the Motor Insurance Advisory Board represent the greatest change in the ethos of the insurance industry in the history of the State. The Tánaiste has been responsible for piloting through these measures. I look forward to the legislation being passed before the end of this term by both Houses of the Oireachtas. I anticipate that both sides of the House will co-operate to assist the Tánaiste in this regard. She is responsible for the progress evident in the reduction in this year's premia by many of the larger companies. This is a significant reduction, bearing in mind the massive increases that have taken place in recent years and I hope it will continue.
People are now more aware of the damage done by fraudulent claims. A campaign has been established to ensure that such claims are fought every step of the way. I am sure that Members on both sides of the House would agree that more has been achieved in the past number of years in terms of tackling the insurance industry as a whole than has ever been done before. It would be encouraging if the House would see fit to unanimously back the motion before us, bearing in mind that the report of the Joint Committee on Enterprise and Small Business—