Personal injury claimants and insurance companies are rejecting one-third of awards made by the body set up to cut out litigation and legal costs in such cases.

The Personal Injuries Assessment Board (PIAB), established by the Government to handle road accident and work injury claims where liability is not contested, has made 2,000 awards since it began operations last year.

Chief executive Patricia Byron confirmed last night that claimants or insurers have rejected approximately 600 of these, and are opting to have the cases settled in court. While the PIAB is designed to cut out legal costs, any party who goes through the system has the option of going to court if they are not happy with the outcome.

It is understood that it is largely claimants who are rejecting their awards on the grounds that they are inadequate. However, some insurers are also turning down the board's findings on the basis that they are being asked to pay out too much.

The Oireachtas Committee on Enterprise and Small Business yesterday heard that the level of rejections was higher than expected. However, representatives of insurance companies said the level was not growing.

Senator Joe O'Toole, a member of the committee and vice chairman of the PIAB, agreed. "I'm sure that the rejection rate is not increasing, it's steadying."

Ms Byron said the parties involved settled 8,000 cases before the PIAB adjudicated on them, and argued that the system was speeding up the resolution of cases.

Before the PIAB was established, insurers had blamed high legal costs for driving up premiums and had lobbied for the introduction of the board.