Savings of c. €100 million (and compensation awards of €150m) have been delivered by the Personal Injuries Assessment Board (PIAB) to date, but there can be no room for complacency warned Patricia Byron, Chief Executive, PIAB. Ms Byron was speaking at the Inaugural Insurance Industry Forum hosted by PIAB (Thursday, 6th December 2007). Mr Micheál Martin T.D., Minister for Enterprise Trade and Employment was guest speaker at the event which was attended by representatives from the insurance and re-insurance industries.
The Forum is designed to communicate (to insurers and re-insurers) the key consumer considerations informing the policies and actions of three State bodies, viz. PIAB, the Financial Regulator and the Financial Services Ombudsman. Speakers at the event included Mary O’Dea, Consumer Director of the Financial Regulator and Joe Meade the Financial Services Ombudsman.
The PIAB sponsored forum highlights two key factors that will enhance the claims process experience for claimants as well as helping to reduce insurance premia. Those factors are improved communication with consumers and improved information exchange between insurers / re-insurers and appropriate State bodies.
Since its establishment in 2004, PIAB’s non-adversarial model has succeeded in:
• reducing the timeframe for processing personal injury claims from over three years to c. seven months
• reducing claims’ processing costs from 46% to less than 10%, while
• maintaining the same level of compensation awarded to claimants
The process has benefited thousands of claimants and has facilitated lower insurance premia (circa. 1997 levels in respect of motor insurance) for businesses and for individuals.
According to Patricia Byron, Chief Executive, PIAB, today’s forum represents a significant step forward in achieving co-operation between the key State bodies and the insurance industry, which can only yield positive returns for consumers.
“Overall, the measures PIAB has implemented to date have resulted in a positive impact for consumers and businesses alike. In addition, cost reductions have stimulated competition in the insurance marketplace, and the industry has played its part by delivering lower premia”, she said.
“In terms of what remains to be done, it would be a mistake to assume our collective job is over and to permit costs and premia to increase once again. Over recent months PIAB has enhanced its services and allowances to vulnerable claimants. Over the coming years PIAB is committed to further enhancing access for claimants and to improving public understanding of the process. Enhanced online communications and improved supports to non English speaking claimants are just two areas of focus for 2008.
“We also believe that the medical profession, the insurance industry and complementary State bodies such as the Financial Regulator and the Financial Services Ombudsman can assist in safeguarding consumer interests. We believe that increased co-operation is required between all stakeholder groups and today marks the first step in this process”, added Ms. Byron.
Speaking at the forum, Mr. Micheál Martin T.D., Minister for Enterprise, Trade and Employment stated, “By any standards the last 5 years have witnessed some remarkably positive trends in the insurance sector in Ireland. Motor insurance prices are now at November 1997 levels and employers costs are no longer the burden to business they once were. Minister Martin added that the fact that PIAB are assessing claims three times faster and four times cheaper than under the old litigation system is all good news for the consumer.”
Consumer Director of the Financial Regulator, Mary O’Dea said, “The work of both the Financial Regulator and PIAB aims to benefit consumers in the insurance market. For our part, we have set out clearly in our Consumer Protection Code what our expectations are for industry interactions with consumers. For example, each firm must now have in place a written procedure for the effective and proper handling of claims and must keep consumers informed on a regular basis as to how their claim is progressing.”
“The Financial Regulator’s most recent Private Motor Insurance Statistics show that claims are settling quicker and at a lower cost which is a welcome development for consumers. I am sure this is due in no small part to the work of the PIAB”, she added.
Joe Meade, Financial Services Ombudsman, stated, “As Financial Services Ombudsman my office is part of the enhanced regulatory system for the financial services introduced in the past decade. My brief is to deal with complaints in a fair and impartial manner. This enables my office to publish trends and case studies, as appropriate, thereby enhancing protection for consumers while at the same time acknowledging that providers strive to treat customers fairly in most instances.’’
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Personal Injuries Assessment Board
| Sorcha Coady | 01 463 4551 / 086 803 2926 |
Note for Editors
About PIAB:
The Personal Injuries Assessment Board (PIAB) is the independent statutory body which assesses the amount of compensation due to a person who has suffered a personal injury.
PIAB was set up as part of the Government Insurance Reform Programme to tackle the high costs associated with the delivery of compensation for victims of motor, workplace and public liability accidents.
PIAB assesses claims three times faster and at a delivery cost that is four times cheaper than through litigation while maintaining the level of awards which Claimants receive. Under the PIAB Act 2003 all claims for personal injury (excluding medical negligence) must be submitted to PIAB.
PIAB can be contacted directly at its Helpline, Lo-Call 1890 829 121 between 8am and 8pm from Monday to Saturday or by post to PIAB, P.O. Box 8, Clonakilty, Co. Cork.
To apply to PIAB you need to:
• Complete an application form – PIAB will assist you in pre-filling this form.
• Submit a medical report from your treating practitioner
• Submit a €50 application fee