Injuries Board fulfilling mandate given by the Oireachtas
2/3rds of all Personal Injury claims settled outside the Courts
The Injuries Board mandate to process 2/3rds of all Personal Injury claims has been achieved. Speaking at the Joint Oireachtas Committee on Enterprise, Trade and Employment today (Wednesday, 15th October 2008), Non-Executive Chairperson, Dorothea Dowling, highlighted that 2/3rds of all Personal Injury claims are now being administered by the Board with only disputed cases being authorised for release to the Courts.
Patricia Byron, Chief Executive of the Injuries' Board, reporting on the 2007 annual results detailed a range of key results including claims now being processed within a statutory 9 months compared to the 3 years people traditionally had to wait to secure compensation through the litigation system. The new slimmed down infrastructure operates at a cost of less than 10% compared to the historical 46% overhead. In monetary terms savings of €100m per annum are being achieved. Ms. Byron added "the new model proves that focusing on the evaluation of medical facts delivers compensation in a non adversarial manner. Accident victims have embraced the process. Unnecessary adversarial layers have been removed."
Dorothea Dowling said "Five years ago, the Irish people - through the Oireachtas - embarked on an entirely new way of dealing with Personal Injury claims which also aids earlier rehabilitation. The litigation overhead for delivering compensation had reached such levels that the State was concerned with the crippling effect this was having on our economy. While jobs were being lost when businesses shut down, every consumer also felt the effect in the cost of goods and services all of which are influenced by the cost of insurance. This was the driving force behind the setting up of the Injuries Board.
"After much debate, inside and outside the Oireachtas, it became clear what most sensible people wanted - a system to deliver personal injury compensation in a prompt, fair and transparent manner. Along with other insurance reforms including improved safety measures, the Board's work has contributed to a fall in insurance premium. In real terms, the cost of motor insurance today is more than 50% cheaper than i t was in 2002. The fact that the Board is self-funding and therefore not a draw on either the Exchequer or the taxpayer is particularly relevant in the current economic climate." Ms. Dowling added.
Patricia Byron, Chief Executive of the Injuries' Board, told the Committee that since opening its doors 4 years ago the Board had made over 20,000 awards and by the end of this year will have approved over half a billion euro in awards. "Indications are that in 2008 total awards in excess of €215m will be made this year alone. The Board focuses on medical facts pertaining to real people with real injuries and how that effects their daily lives rather than spending time on avoidable adversarial contests."
The Board's non-adversarial model benefits:
- Claimants: who receive the same award as in the courts but two years sooner than the old system;
- Consumers who benefit from reduced insurance premiums, lower in real terms today than in the late 1990's and
- Respondents / Business Community: who save in reduced operating costs.
Ms. Byron told the Committee that the Personal Injuries Assessment Board (Amendment) Act passed by the Oireachtas in July 2007 had contributed to a rise in the acceptance rates of awards and the further avoidance of unnecessary litigation.
Ends
Wednesday, 15th October 2008
For reference:
InjuriesBoard.ie
Gerry Naughton 01 4634565 / 086 803 2891
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