Ó An Roinn Fiontar, Trádála agus Fostaíochta
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Minister for Enterprise, Trade and Employment Peter Burke today announced the commencement of mediation for the resolution of motor liability personal injury claims by the Injuries Resolution Board.
Announcing the commencement, Minister Burke said:
"Today sees an extension in the roll out of mediation as a new service for resolving personal injury claims by the Injuries Resolution Board. From today, the Board will offer mediation to both claimants and respondents to facilitate the settlement of motor liability injury claims. The Board’s mediation service for public liability personal injury claims commenced in May and was commenced for employers’ liability injury claims last December.
"This is part of the government’s ‘Action Plan for Insurance Reform’ which set as a principal goal the reform and enhancement of the then Personal Injuries Assessment Board, and which has been achieved through the Personal Injuries Resolution Board Act 2022. Mediation is an effective way of resolving disputes quickly and in a cost-efficient manner. It helps parties reach a mutual agreement and provides an alternative to litigation which can be costly, stressful and time-consuming for all involved.
"Already we have seen a strong initial response to the introduction of mediation with almost 40% of claimants indicating that they would be willing to enter into the mediation process in workplace accident claims."
Mediation can address a broader range of issues than those currently considered in the Board’s assessment service, including claim value, extent of injury, and contributory negligence among others. More particularly mediation allows the Board to consider cases where liability is not agreed. This is something that it has not been able to do previously. This represents a step change in the work of the Board as it allows it to take on a significant number of new cases thereby increasing the substantial savings that it has already achieved against the costs of litigation through its work.
Minister Burke further added:
"The enhancement of the Injuries Resolution Board, which this year celebrated twenty years since its establishment in 2004, is very positive. The current consent rate to assessing cases for the Board was an impressive 71% at Quarter 3 this year, while the acceptance rate for their assessment awards has risen from 36% in mid-2021 to a healthy 50% this year."
The Board was twenty years old in April 2024. In that twenty years it has received in the region of 500,000 cases, which have resulted in over 180,000 injury awards with a total value of approximately €2.2 billion. In carrying out this work it is estimated that the Board has achieved €1 billion savings in that time.
The Personal Injuries Resolution Board Act 2022 was signed into law by the President on 13 December 2022. The Act amends the Personal Injuries Assessment Board Act 2003-2019 to increase the number of personal injury claims settled through the Injuries Resolution Board (formerly PIAB) and to reduce the expense and time associated with personal injuries litigation. The Act also provides for measures to be taken against the making of fraudulent claims.
Phase 1 of the Act commenced on 13 February 2023 and included provisions relating to the retention by the Board of additional claims and the treatment of costs should cases proceed to litigation.
Phase 2 commenced on 4 September 2023 and provided for the mandatory elements required when making an application to the Board.
Phase 3 commenced on 14 December 2023 and saw the introduction of a mediation service offered by the Board for the resolution of employer liability (workplace) personal injuries claims. The mediation service was extended to public liability injury claims on 8 May 2024 and is now being commenced for motor liability injury claims with effect from 12 December 2024.
Also under the 2022 Act, the Injuries Resolution Board has been given a new data analysis and reporting function. The Board has embarked on publishing reports designed to utilise the agency’s comprehensive data on accidents, claims and personal injuries.
These reports will provide insights on specific areas of interest, with a view to informing policy, promoting public awareness and supporting the development of accident prevention strategies.
The Injuries Resolution Board independently assesses claims for compensation arising from personal injuries sustained as a result of a motor, workplace, or public liability incident. Under the Personal Injuries Assessment Board Acts 2003-2022, all personal injury claims, with certain exceptions, such as medical negligence cases, must be submitted to the Board unless they are settled by the parties involved at an early stage.
The Central Bank’s reporting under the National Claims Information Database shows that claims settled through the Injuries Resolution Board are settled faster and have much lower legal costs than those settled by litigation, despite having similar award levels for claimants.
The Programme for Government contains commitments to deliver an insurance system which is both affordable and reliable and one which underpins a vibrant economy. The ‘Action Plan for Insurance Reform’ was launched on 8 December 2020. The Action Plan sets out 66 actions for reform to bring down the costs for consumers and business and to introduce more competition into the market. The Action Plan is now virtually complete with the latest Implementation Report showing 95 percent of the actions contained in the Action Plan either delivered or initiated.