Social Welfare Code

Dáil Éireann Debate, Tuesday - 5 February 2013

Tuesday, 5 February 2013

Questions (408)

Róisín Shortall

Question:

408. Deputy Róisín Shortall asked the Minister for Social Protection if she will use the opportunity of the Social Welfare and Pensions Bill later this year to provide for the reimbursement to her Department by insurance companies of social welfare payments deducted from awards of special damages in respect of loss or earnings; the reason no action has been taken on this issue in view of the fact that her Department has been aware of the anomaly for several years and knowing the considerable spending pressures in her Department; if she has finally costed the potential yield arising from such a change; the results of same; and if she will make a statement on the matter. [5204/13]

Written answers

Minister for Social Protection

Social welfare legislation does not currently provide for reimbursement to the Department by insurance companies in cases where adjustments may have been made to special damages awards on foot of social welfare payments received by plaintiffs.

My Department has undertaken a substantial amount of background work on this matter including direct engagement with the Personal Injuries Assessment Board and the State Claims Agency as well as extensive discussions with counterparts in Northern Ireland, where a system of reimbursement is in operation.

The issues involved in introducing changes in this area are complex and continue to be considered within my Department. I should mention that in advance of the introduction of any legislative changes in relation to this matter, it would be necessary to engage in extensive consultations with, amongst others, representatives of the insurance industry, the legal profession and employers’ representatives, in order to adequately assess all of the possible implications and to comply with formal Regulatory Impact Assessment requirements.

On the basis of an exercise undertaken in conjunction with the Personal Injuries Assessment Board, it is tentatively estimated that programme savings of the order of €21 million per annum could potentially be secured.