The board and council of the Insurance Ombudsman have rejected claims that Ms Paulyn Marrinan Quinn has been subject to pressure or coercion from the insurance industry.

The claim was made by Mr Bill McLaughlin, a former member of the council who resigned in protest over a week ago because he said Ms Marrinan has faced "unremitting coercion".

Ms Marrinan Quinn is due to step down as Ombudsman in August. She refuses to comment on Mr McLaughlin's claims, other than to say that,, while she accepted that there were two versions of events, it was for others to decide which version was correct.

The Insurance Ombudsman Council said yesterday that, after meeting to review Mr McLaughlin's, claims it had found them to be "without substance".

"The primary role of the council is to guarantee the independence of the judicial function of the Ombudsman and the council is satisfied that at all times it has fulfilled this role," a statement said.

The council, which consists of seven members, was set up to act as a buffer between the Ombudsman and the board, which is entirely composed of industry representatives.

The Board of the Insurance Ombudsman said it had never "interfered with the work of the council or the decision-making process of the Ombudsman or sought to influence her decisions once made".

The board's statement does not deal with Mr McLaughlin's specific claims, for example, that the board sought to influence the content of Ms Marrinan's annual reports.

However, it does strongly reject Mr McLaughlin's accusation that the board had continuously interfered in the work of the council.

Last night Ms Marrinan Quinn said she could not comment on the issues involved because it might undermine the confidence of the policyholders whose complaints are going through her office.

"I am not going to get involved in a dispute that might undermine my work," she said. Mr McLaughlin could not be contacted for comment.

Mr Michael Lane, chairman of the board, pointed out that Ms Marrinan commented recently on the co-operation offered by insurance companies in assisting her investigations and implementing her recommendations.

Mr Lane pointed out that under the Ombudsman scheme's terms of reference there was a role for the council in "supervising" the Ombudsman in relations to the administration of the office.

A source said last night, in relation to Mr McLaughlin's claims, that "one man's supervision is another man's interference".