A draft Government plan to give the Personal Injuries Assessment Board (PIAB) a mediation role in insurance disputes has met resistance from insurance campaigners even before the measures go to Cabinet for approval.
The proposal from Minister of State for Enterprise Robert Troy has led to claims that involving the PIAB in mediation would prolong disputes and increase costs, conflicting with the aim of quickly resolving cases at low cost.
“People are voicing that issue,” said one Coalition figure with direct knowledge of Mr Troy’s proposal, referring to concern that mediation would lead to increased PIAB settlement costs. “A lot of Oireachtas members started getting emails just before the weekend. A lot of TDs are getting contacted.”
The PIAB is a statutory body set up in 2003 with the objective of resolving insurance disputes “without the need for many associated litigation costs”; the aim being to reduce the cost of claims.
However, premiums have continued to rise and campaigners have long pressed for deeper and more far-reaching reforms in the market to drive insurance costs down.
Mr Troy circulated outline plans to overhaul the PIAB to government departments in recent days, seeking observations before a final proposal is prepared for the Cabinet.
The move quickly led to complaints to Ministers from TDs as details about the mediation plan leaked out.
Owner of Supermac’s fast-food chain Pat McDonagh, a prominent advocate for insurance reform, said PIAB mediation could be self-defeating as it would keep lawyers at the table and help maintain the “unique exorbitant cost of claims resolution” in the Irish market.
“Any attempt to have mediation included as a new step in the legislation to reform PIAB will weaken PIAB, not strengthen it. It will prolong matters, increase costs and it is impossible to see how it will assist if liability for a claim is not accepted by a defendant,” he said.
“As the economy eventually recovers from this Covid catastrophe, without legislative change done now, many citizens and SMEs may not be able to afford insurance as the country reopens.”
There was no specific comment from Mr Troy’s office on the mediation proposal or the objections raised against it.
“Proposals have not yet been put to Government for consideration. Minister Troy intends to publish the proposals once Government approval is received,” said a spokeswoman in response to questions from The Irish Times.
Mr Troy’s “ambition” for PIAB was to increase the number of personal injury claims it processed and ensure the procedure was cost-effective and concluded in a timely manner, she added.
“He has met with SMEs, representative bodies, and PIAB regularly to inform the development of proposals to enhance its role. A public consultation was launched in March last year seeking views from all interested parties and these were carefully considered.”
She said Mr Troy had “exhausted all avenues” to ensure any new proposals were robust and fit for purpose to achieve his aims. “This work to reform and enhance PIAB is just one part of the Government’s reform agenda to tackle the high cost of insurance.”
