From tomorrow, people involved in car accidents where liability is not disputed must refer personal injury claims to the Personal Injuries Assessment Board (PIAB). Under the new system, cases can be taken to court only if those suing or being sued go through PIAB first but reject its assessment.
Those in crashes where liability is not disputed will have to submit medical reports to PIAB which will use them to determine compensation for pain and suffering (general damages). Vouched loss of earnings, medical costs and out-of-pocket expense (special damages) will be included in the assessment.
PIAB says those injured will be compensated much more quickly under the new system. Assessments should take no longer than nine months, with compensation paid by insurance companies shortly afterwards.
Claiming for car damage is unchanged - drivers can deal directly with insurance companies. PIAB can also determine repair costs as it has access to the common nationwide estimate system used by insurers. It expects most car damage claims to be resolved by the time of the personal injury assessment.
The new board removes legal costs from payouts where liability is undisputed and assessments are accepted by all. At the moment 10 per cent of personal injury cases end up in court and PIAB chief executive Patricia Byron believes this will not change.
Instead the board expects to deal with the 90 per cent of cases which up to now were settled on the steps of the court, many involving awards under €50,000 and incurring legal costs.
"The new service is for the public with victims at the heart of it," says Byron. "Claims are resolved in a non-adversarial manner so that it should be more cost effective for both sides."
But Ken Murphy of the Law Society, whose members stand to lose out, maintains "it would be wise to retain a solicitor to amass the evidence, photos and statements needed, especially if either party rejects an assessment and the case goes to court."
It will be some time before we see if the new forum's assessments are accepted or if cases will go to court. PIAB insists awards will be equivalent to current levels. Pain and suffering will be determined through the Book of Quantum published on PIAB's website which lists a range of values for various injuries based on current awards. Special damages will be based on receipts and estimated future costs.
Other changes such as the Court and Civil Liability Bill just passed by the Dáil will also have an impact. When this becomes law, those rejecting a compensation offer which is then lodged in court and not bettered, may be liable for all costs. It will also reduce the statute of limitations for personal injury civil actions from three years to two years from the date of the accident or the date of knowledge of the extent of the injuries. The clock stops running when the case goes to PIAB and restarts six months after leaving PIAB if one of the parties rejects the assessment.
The PIAB is funded by the €850 fee paid by those being sued who may pass the case over to their insurers. From tomorrow public liability claims and personal injury claims from future road accidents and past accidents where court proceedings have not already been instituted must be referred to it.