Cautious welcome for new injury bill

ISME given a cautious welcome to the announcement by Minister Humphreys of the publication of the Personal Injuries Assessment Board Bill 2018.

However, the small and medium business lobby group say that the proposals made in this Bill do not go “remotely far enough” to ensure that the majority of claims are dealt with by PIAB, rather than in court.

“Since legal costs account for approximately 46 per cent of the amounts settled for in court, it is imperative that the number of cases settled within the PIAB system is increased drastically and quickly. By not introducing ‘moral hazard’ for claimants refusing to use the PIAB system, claimants will continue to go to court unnecessarily,” said ISME.

“The Bill entirely fails to introduce moral hazard for claimants who unfairly or unreasonably refuse a PIAB assessment, and take their claim to court. Currently, a claimant who rejects a PIAB assessment for, say €10,000, and takes their case to court and is awarded €10,001, will succeed in the recovery of costs, because their award is greater than the PIAB assessment. This is absurd.”

It will not encourage the settlement of claims within the PIAB system. Since legal costs in personal injuries cases routinely amount to 46 per cent of the quantum of award, ISME suggests that the Bill explicitly provides that defendants should not have to foot costs unless plaintiffs proceeding to court succeed in trumping their PIAB assessment by 46 per cent.”

ISME has previously estimated the cost of legal fees in the personal injuries industry to be in the region of €350m annually.

ISME has also called for a statutory offence of perjury, and for the submission of claims to PIAB to be sworn under affidavit (or an equivalent statutory declaration).