PIAB driving cultural shift in claims resolution
Press Release 7th March 2006
PIAB driving cultural shift in claims resolution.
The Personal Injuries Assessment Board Chief Executive, Patricia Byron, said today "In 2005 we experienced a dramatic cultural shift in how personal injury cases in Ireland are dealt with by those pursuing claims, and by those responding to claims. The new system has proven that personal injury claims can be resolved significantly faster and, whilst PIAB delivers the same level of compensation to victims, we also significantly reduce the cost of delivering compensation from one party to another."
Through the PIAB Helpline (Lo-Call 1890 829 121), open Monday to Saturday between 8 am and 8pm, PIAB encouraged, from the outset, open and transparent dialogue between parties involved in accidents. PIAB has facilitated an unprecedented level of early (pre-assessment) settlements between those claiming and those responding, predominantly insurance companies. Patricia Byron said "It is very rewarding to see how the vast majority of people simply wish to have their claims resolved in a fair, transparent and efficient manner. In addition it is reassuring to see the high level of acceptance of awards by claimants who access the same PIAB service and level of compensation whether they deal directly with PIAB for a fee of €50 or indirectly through a solicitor or other agent."
Historical Court data shows that the vast majority of personal injury litigation resulted in court awards below €38,000, the Circuit Court limit. On average it took 3 years for personal injury claims to reach finality, often on the steps of the Courts, and this attracted an additional delivery charge of on average 46% in addition to the compensation.
The Personal Injuries Assessment Board experience has been similar in some ways and extraordinarily different in others. Ms Byron said "The majority of awards are under €50,000. This confirms that personal injury accidents in Ireland continue to be of low to medium severity; however, there is no limit on the value of claims assessed by the Board. The new PIAB system delivers the same level of compensation to victims within a statutory timeline of 9 months and at a flat fee which equates to a delivery cost of less than 10%."
In 2005 alone PIAB awarded over €11 million in compensation and saved over €4 million in delivery costs. "As more awards are made during 2006 savings will continue to grow", said Ms. Bryon "This is in addition to savings from the extensive early settlements being facilitated by PIAB and the reduction in litigation through the Court system."
Analysis of 2005 figures shows that personal injury claims are made throughout the country broadly in line with population levels. Dublin has the highest number of claims and Leitrim the least, with Limerick having the highest number of claims per head of population.
Ms Byron concluded "I am pleased to report that the PIAB system is now proving to be consistently more than 4 times cheaper and over 3 times faster than litigation. This will benefit insurance policyholders who have already experienced cuts in their premium charges in recent times. After all, insurance costs impact the cost of almost all goods and services in the country. Now in its second year of operation, 3 out of 4 PIAB awards continue to be accepted, whether a claimant deals directly with PIAB or through a representative. The public demanded a new system and have worked along with the Board to deliver a solution which benefits society at large."
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Further information contact:
Sorcha Coady 01 463 4551 or 086 803 2926
Editors Notes