PIAB Continues To Deliver Compensation Three Times Faster And Four Times Cheaper
Press Release 11th October 2006
PIAB Continues To Deliver Compensation Three Times Faster And Four Times Cheaper
Announcing a summary of its annual figures for 2005 today, 11 th October 2006, the Personal Injuries Assessment Board (PIAB) confirmed that it is continuing to process claims at a rate that is three times faster and four times cheaper than the old litigation based process whilst still providing similar value awards. Early settlement of claims is growing due to the Board's influence, and most of the legal profession is now working with the PIAB.
PIAB's 2005 figures show that it delivers compensation within 9 months while the litigation process delivered compensation in 3 years. The average cost of processing a claim under the PIAB system is 10% of the award made, while under litigation that figures was 46%.
"The fact of PIAB's existence and its consistent performance in providing a more cost effective and quicker process has led to a major change in the redress culture amongst respondents and claimants," explained Patricia Byron, Chief Executive, PIAB. "We are finding, for example, that many claims notified to us through our lo-call number 1890 829 121, are being settled right away between the parties. But perhaps the most encouraging news is that the majority of the legal community are engaging with PIAB wholeheartedly and that is reflected in the figures supplied to us by the Courts Service," said Ms Byron.
In 2004, a total of 35,000 writs were issued in respect of personal injury cases to the High and Circuit Courts. This figure dropped to 4,000 in 2005 following the inception of PIAB.
"This shows that whether claims are being settled between claimants and respondents following PIAB's intervention or being settled directly through PIAB, much fewer are going to Court with its attendant trauma and cost. A knock-on effect of that is that the legal diaries are now free to tackle other urgent cases," concluded Ms Byron.
PIAB was set up as part of the Government's successful plan to tackle rising insurance costs. The Minister for Enterprise, Trade and Employment, Micheál Martin T.D., has welcomed these developments. In particular, he welcomed the speedy turn-around of claims, commenting "in the past, the long wait for compensation and the adversarial approach to the process led to huge uncertainty and stress for claimants, and they were often left uncompensated for injuries received for many years following an accident". The Minister also welcomed the reductions in the cost of delivering compensation, and commended the Personal Injuries Assessment Board on its achievements to date.
The 2005 annual figures also showed that PIAB has, within two years of its establishment, moved to an operational model that requires no state subvention. The cost of processing claims is being fully met by the charges it levies.
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For further details contact:
Sorcha Coady - 01- 4634551 or 086 803 2926
Editors Notes