A new body that will adjudicate on compensation claims as part of a Government initiative to lower insurance premiums is due to begin hearings this week. Carl O'Brien reports.
Government sources estimate that the new Personal Injuries Assessment Board (PIAB) will contribute to a 7 per cent drop in insurance costs for businesses.
By eliminating the need for litigation costs where legal issues are not in dispute, it is planned that the "lawyer-free" system will offer speedier and more cost-effective assessments.
The PIAB will hear employer liability cases in the first months of its operation, and will eventually progress to hearing public and motor liability claims.
The insurance industry estimates legal and other delivery costs involved in assessing and settling personal injury claims amount to as much as 40 per cent of overall compensation in motor and liability claims.
However, the Bar Council and the Law Society have expressed doubt over the impact of the new system, and some have questioned whether savings will be passed on to customers.
Under the new system all cases where legal issues are not in dispute will be referred to PIAB.
Assessment of damages for pain and suffering will be based mainly on medical reports from the claimant's doctor or a member of the board's independent medical panel.
In contrast to the current adversarial system, with legal teams on each side, the assessors with PIAB will be inquisitorial, seeking themselves to ascertain the facts of each case.
The board has also compiled a guideline to general damages that would typically be awarded by the courts.
While parties to a claim may seek independent legal advice from a solicitor, the board will not award legal costs for this advice except in relation to "vulnerable persons".
The board will also be able to award special damages for items such as loss of earnings and medical expenses.
If parties do not accept the outcome of the PIAB assessment they may reject the award and take court proceedings instead.
Ms Patricia Byron, who previously oversaw a reform programme within the group that regulates compensation for victims of accidents involving uninsured and untraced drivers, was appointed as PIAB's chief executive earlier this year.
The establishment of PIAB, overseen by the Tánaiste, Ms Harney, is part of a series of insurance reforms including the outlawing of spurious claims.
The board, which will operate out of premises in Tallaght, will operate by contracting work out to a service centre, which will assist injured parties in completion of their claims.