The Tánaiste is confident that the Personal Injuries Assessment Board (PIAB) Bill published today will not encounter constitutionality problems.
Publishing the bill, Ms Harney said that by eliminating the need for expensive legal fees and speeding up personal injury assessments, the cost of compensation will fall. Up to 40 per cent of compensation costs are legal fees, she said.
However, when the draft Heads of Bill were published last year, the Bar Council warned that it could impinge on the constitutional protection of a citizen's right to fair procedure. The Bar Council has not yet issued an opinion on the final bill.
Funding for the PIAB will come from fees levied on insurance companies. The body is not for profit and received €5 million for its establishment under the estimates.
To use the PIAB claimants will pay a refundable administration fee. It is intended that the PIAB will process claims far more quickly that the courts.
However, in the event that a PIAB assessment is rejected by one of the parties this claim can then be referred to the courts.
Welcoming the new bill the Tánaiste claimed the fact that three insurance companies have "indicated their intention to reduce insurance premiums" in the past week shows the Government's reform programme is working.
It is intended that the PIAB will start hearing claims from early 2004. It will initially focus on employer liability before being extended to claims in road crashes and public liability.
To guide general damages a Book of Quantum will be complied. As a result of the changes the Irish insurance market was attracting interest from potential new operators.