The Irish Insurance Federation (IIF) has welcomed moves to establish a Personal Injuries Assessment Board (PIAB).

The announcement comes as draft legislation was published today by deputy Irish prime minister, Mary Harney, which could lead to the introduction of the PIAB in the near future.

The PIAB could reduce the cost of personal injury claims by settling claims out of court according to expert guidelines.

IIF chief executive Michael Kemp said: "Today's publication of the draft heads of the PIAB Bill is good news for both insurance companies and policyholders. Insurance premiums are determined by many factors, but the legal and other delivery costs incurred in assessing and settling personal injury claims are an important element, running at more than the amount of compensation paid in some cases, and overall at over 40% of compensation in motor and liability claims. If the PIAB fulfils its potential, then unnecessary delivery costs should be eliminated once and for all.

"Mary Harney has acknowledged today that 'there has already been some downward movement in motor insurance premiums, with more reductions in the pipeline', while reiterating the commercial reality that reduced premiums are absolutely contingent on continued reductions in claims costs and frequency."

Topics