Dáil Éireann Debate, Wednesday - 17 April 2024
31. Deputy John Lahart asked the Minister for Enterprise, Trade and Employment if new mediation measures are providing a significant step change for resolving insurance claims nationwide; and if he will make a statement on the matter. [16944/24]
View answerThe reform and enhancement of the Injuries Resolution Board, with the overarching aim to have more claims settled through the agency, has been a priority for me since taking office.
The Personal Injuries Resolution Board Act 2022 was enacted in December 2022 and commenced over three phases in 2023. The Act transforms the agency by enabling it to retain more cases, gives it a data gathering and reporting role, and significantly introduces a mediation service by the Board to help resolve personal injuries claims. The introduction of mediation I believe will result in more claims being settled through the Board in a faster timeframe and thus avoiding the need for lengthy and costly litigation.
Mediation is widely recognised as an effective way of resolving disputes quickly and in a cost-effective manner. This service will help parties to reach a mutually acceptable solution in personal injury claims and is a significant step change for resolving injury claims in our country. Mediation can address a broader range of issues than those currently considered in the Board’s assessment service, including liability, claim value, extent of injury, and contributory negligence among others. It also has the advantage of being quicker than assessment which will benefit those making the claim and the insured alike.
The service is being introduced on a phased basis, with mediation for employer liability claims introduced by the Board on 14 December 2023. I intend to commence mediation for public liability injury claims in May and for motor liability claims in September. The Board has put in place a panel of professionally trained mediators to provide this service.
The mediation service is in its infancy and under the legislation respondents have up to 90 days to respond to a notice of claim so it will take time to see trends. Initial engagement with stakeholders has been positive, and provisional figures indicate some 37% of claimants so far are opting for mediation which is a very strong and positive initial response.
In the 20 years since the Injuries Resolution Board was established and since then, over 150,000 claims have been assessed with a value of over €1.5 billion in accepted awards saving millions in litigation costs. In 2022 alone, the amount saved in avoided costs due to litigation claims was €40 million.
An extensive programme of stakeholder engagement and a communications campaign highlighting mediation is being rolled out by the Injuries Resolution Board throughout 2024. Stakeholder engagement with the fora of the Department of Enterprise, Trade and Employment, including the Enterprise Forum and the Retail Forum, has already taken place in Quarter 1 2024.
