Dáil Éireann Debate, Thursday - 16 December 2004
10 Mr. Penrose asked the Minister for Enterprise, Trade and Employment the position with regard to the operation of the Personal Injuries Assessment Board; the number of staff recruited to date; the number of claims received to date by the board; and if he will make a statement on the matter. [33740/04]
Amharc ar fhreagra32 Mr. J. O’Keeffe asked the Minister for Enterprise, Trade and Employment the number of applications for assessment made to the Personal Injuries Assessment Board in the half year since its formal establishment on 1 June 2004; and the number of staff working with the PIAB. [33549/04]
Amharc ar fhreagraI propose to take Questions Nos. 10 and 32 together.
The Personal Injuries Assessment Board was established by ministerial order on 13 April 2004. From 1 June 2004 all personal injury claims arising from workplace accidents, where an employee is seeking compensation from his-her employer, must be referred to the Personal Injuries Assessment Board before legal proceedings are issued. From 22 July 2004, all motor liability and public liability claims must also be referred to the Personal Injuries Assessment Board before legal proceedings are issued.
The structure and staffing levels of the PIAB have been agreed. The PIAB, when fully operational, will have a staffing complement of up to 85 in addition to the CEO. The PIAB is also utilising an outsourced service centre to assist injured parties in completion of their claim submissions and ensure a comprehensive, fair and independent service is provided.
The actual recruitment of staff is an operational matter for which the CEO of the Personal Injuries Assessment Board has responsibility. However, I understand that following a significant recruitment campaign, the PIAB has recruited sufficient staff to serve the current needs of its business.
While matters relating to the claims received by PIAB is also an operational matter for which the CEO has responsibility, the latest available figures to me show that up until 10 December, 9,392 calls had been received, 555,532 website hits had been recorded, and a total of 2,125 applications for assessment had been made, broken down as follows: 710 employer liability applications, 587 public liability applications, and 828 motor accident applications.
The establishment of the PIAB will lead to reduced insurance premia to the benefit of both consumers and businesses alike. By eliminating the need for litigation costs where legal issues are not in dispute, the PIAB will significantly reduce the cost of delivering compensation. The PIAB will also offer speedier assessments to the benefit of claimants.
12 Ms McManus asked the Minister for Enterprise, Trade and Employment if his attention has been drawn to the conclusion contained in the final report of the Motor Insurance Advisory Board that there was scope for insurance premiums to fall further; if he intends to take steps to ensure that this happens; and if he will make a statement on the matter. [33751/04]
Amharc ar fhreagra66 Mr. Broughan asked the Minister for Enterprise, Trade and Employment if he has satisfied himself at the reported reduction in the level of insurance premiums in view of figure showing that insurance companies here are now making substantial profits; and if he will make a statement on the matter. [33750/04]
Amharc ar fhreagraI propose to take Questions Nos. 12 and 62 together.
My Department no longer regulates insurance undertakings. This responsibility has passed to the Irish Financial Services Regulatory Authority, IFSRA, under the aegis of my colleague, the Minister for Finance, who holds overall responsibility for policy and legislation in relation to the provision of financial services in Ireland. My colleague, the Minister for Transport, has taken over the lead role in relation to policy and legislation on the availability and cost of motor insurance and any related inter-departmental co-ordination. The primary ongoing insurance focus of my Department will be from the horizontal competitiveness perspective and competition in conjunction with the Competition Authority. My Department also retains responsibility for the Personnel Injuries Assessment Board.
I am aware of the conclusion in the final report of the Motor Insurance Advisory Board, MIAB, that there is scope for motor insurance premia to fall further, and while there have been significant reductions in the cost of motor insurance, as the following points illustrate, I am satisfied that there is indeed scope for further reductions.
Central Statistics Office, CSO, consumer price index statistics show that there was a reduction of 20% in motorcar insurance between April 2002, when the first MIAB report was published, and October 2004. Examples provided by MIAB for three specific companies between March 2003 and March 2004 indicates the following reductions: 10% to 16% in comprehensive insurance for a 30 year old male; 10% to 41% in comprehensive insurance for a 50 year old female; and 10% to 45% for third party, fire and theft insurance for a 21 year old male.
The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents governments from intervening directly in relation to premium levels. However, governments are free to take measures to improve the operation of the insurance market. Recent measures taken under the Government's insurance reform programme have led to a better functioning insurance market. This is reflected in the significant underwriting profits in the insurance industry as reported by IFSRA in its first insurance statistical review of October 2003, previously published by my Department.
The new operating conditions enhance the attractiveness of the market to prospective new entrants and while the premium reductions we have seen to date are welcome, I would expect further premium reductions from the new market conditions now in place. Competition from new entrants attracted by better market conditions will be an important element in ensuring continuing downward pressure on premia. The recent authorisation of five new entrants to operate in the Irish market will make a further important contribution in this regard. The report of the study undertaken jointly by my Department and the Competition Authority will be published early in 2005. This will provide further insights and make recommendations to further improve the competitive aspect of the insurance market.
