Substantial Savings & High Acceptance Rates
Press Release 13th September 2005
Substantial Savings & High Acceptance Rates Reported by PIAB
The Personal Injuries Assessment Board (PIAB) has announced that substantial savings were already emerging from its handling of personal injury claims. Speaking today, Tuesday 13 September, at the launch of PIAB's first Annual Report, Patricia Byron, Chief Executive, said that savings will grow substantially over the coming months.
PIAB was set up to reduce the costs associated with delivering personal injury compensation. These costs contributed significantly to spiralling insurance premiums in Ireland and claimants usually had to wait three to four years for their compensation claims to be settled.
"PIAB, the new statutory body charged with the assessment of personal injury claims in Ireland has met all of its targets. This includes setting up the organisation, recruiting management and staff, building new infrastructure, systems and process, appointing a Service Centre Provider, publishing a Book of Quantum and opening our doors to new claimants. All of this was completed in 2004 on time and under budget", said Ms. Byron, when reporting on the Board's 2004 activities.
Minister for Enterprise, Trade and Employment, Micheál Martin said "the PIAB, which was established in direct response to consumer needs in the area of insurance costs, is now delivering on its key objectives of reducing the cost of delivery of compensation to victims of accidents and to reducing the time taken to process claims."
"The PIAB was one of a number of key initiatives contained in the Government's Insurance Reform Programme and over the last 3 years these initiatives have led to reductions in insurance premiums for both consumers and business", the Minister added.
PIAB was set up to be a self-financing statutory agency and Ms. Byron said that this would be achieved by the end of this year.
Providing details on progress and outcomes for claimants during 2005, Ms Byron said that 13,000 applications had been received from victims of accidents, the majority of which were received in 2005. 5000 of these claims have either been settled up-front between parties following PIAB's intervention, or claim papers are being submitted by the Claimant. The remaining 8000 are at various stages of the 9 month assessment process. Assessments to date have been delivered approximately three times faster and at a delivery charge four times cheaper than under the litigation system.
Three out of every four PIAB assessments have been accepted and the total compensation awarded so far amounts to €2.7m. The cost of delivering this compensation under the PIAB system amounted to €185,000 i.e. less than 10% of the amount assessed. Under the old litigation system litigation costs would have been approx. €1.2m (i.e. 46% as per the report of the Motor Insurance Advisory Board), representing an actual PIAB saving of €1.1m. Ms. Byron projected that every 1000 assessments would generate savings of €4m based on three out of four people accepting them. Furthermore, additional substantial savings are being achieved due to the increase in early settlements following contact with PIAB, further details of which are awaited.
Commenting that the claims environment has changed significantly, Ms. Byron said that personal injury cases in the High Court had moved from 11,245 in 2003, 15,293 in 2004 to 297 in 2005 year to date. A breakdown for personal injury claims in the Circuit Court is not available. PIAB has not only cut the cost and time to deliver the same compensation levels to accident victims, but the new system has had a very positive impact by freeing up the Courts. This is good for society at large and all the more significant when it is noted that the new body will be self financing by year end, and will not be a burden on the taxpayer.
Ms. Byron closed by reaffirming the commitment of PIAB to serving its key customers, i.e. injured parties and those responding to claims. She said the service is available 6 days a week between 8am and 8pm on LoCall 1890 829 121.
Ends.
Editors Notes
Personal Injuries Assessment Board Annual Report 2004 (PDF)
An Bord Measúnaithe Díobhálacha Pearsanta Tuarascáil Bhliantúil 2004 (PDF)