Dáil Éireann díospóireacht -
Wednesday, 19 Jun 2002

Vol. 553 No. 3

Written Answers. - Personal Injuries Assessment Board.

John Gormley

Ceist:

39 Mr. Gormley asked the Tánaiste and Minister for Enterprise, Trade and Employment when she will establish a personal injuries assessment board; if she will consider introducing mandatory employers' liability and public liability insurances for the corporate sector; and if she will make a statement on the matter. [14012/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

An Agreed Programme for Government contains a commitment to establish the Personal Injuries Assessment Board, PIAB. Towards that end, I expect shortly to present to Government, in accordance with the usual procedures, the report of the Interdepartmental Implementation Group, which I can confirm I received recently. I intend to make the report public after it has been considered by the Government.

An Agreed Programme for Government contains a series of measures aimed at tackling the high cost of insurance, particularly motor and employer liability insurance. These measures include the implementation of the 67 recommendations of the MIAB report, many of which have the potential to impact favourably on employer liability insurance as well; and the establishment of the Personal Injuries Assessment Board.

While employers' liability and public liability insurance is not compulsory in Ireland, surveys carried out indicate that approximately 90% of companies were covered either by commercial or self-insurance.

The introduction of a statutory requirement for limited liability companies to have certain minimum levels of insurance cover in place while trading would be a radical departure from existing practice.

The Deloitte & Touche Management Consultants Report on Insurance Costs in Ireland (1996) pointed out the following possible disadvantages to having compulsory employers' liability insurance: distortion of the market; special arrangements being needed to insure bad risks – as in the case of motor insurance – possibly increasing premiums overall; companies that currently do not have insurance are unlikely to have the highest safety standards; difficulties with restrictions on market capacity; and possible negative effect on safety in the workplace.

There is also the possibility that general insurers in other EU member states might be discouraged from writing business in the Irish market if employer liability and public liability cover were compulsory, since they would have to participate in arrangements designed to ensure that all risks could receive a quote. They would also have to contribute towards an uninsured employers fund.

While I accept that there are also possible advantages to having compulsory employers' liability and public insurance, any such proposal would need careful consideration and would involve detailed consultation with the social partners. An Agreed Programme for Government indicates that urgent consultations on the issue of making employer liability insurance compulsory will be initiated.