The latest Central Bank report on insurance claims shows that it is up to 16 times cheaper to bring injury claims to the Personal Injuries Assessment Board (PIAB) rather than go to court — and it takes 2.5 years less to finalise a claim.
Awards are now very similar in size whether settled at the PIAB or via the courts, with just 3% of employer and public liability claims settled through the courts even though more than 65% of these involve costly and lengthy litigation.
The PIAB has welcomed the report, which covers the areas of insurance that affect businesses, sports, and community groups, saying that it demonstrates the potential savings in costs and time through using its system.
“The Central Bank’s National Claims Information Database report covering 2020, shows that for these types of insurance, where claims go to litigation, the add-on legal costs are 16 times greater than those involved in the PIAB process, and litigation also takes about two-and-a half-years longer,” it said.
Chief executive Rosalind Carroll said: "The report is very clear – PIAB resolves claims with a tiny fraction of the costs of litigation, while delivering similar awards for claimants, much faster. The figures are in line with Central Bank research showing savings in the motor liability area, so there is now strong evidence over a number of years for the savings which are possible in the PIAB process.
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“We expect that the proportion of claims being resolved by PIAB will grow significantly as a result of the guidelines and the recent court judgements on their application by PIAB.”
The report predates implementation of the Personal Injuries Guidelines in April 2021, and Carroll said that in that year average awards reduced by 42%.
She added that legal costs in 2020 were 16 times higher than at PIAB — an average of €20,300 per case in litigation, versus €1,270 per case at the PIAB, and while a case at PIAB took 2.2 years to resolve, the average via litigation was 4.6 years.
Two recent judgements in cases relating to the Personal Injuries Guidelines have already been welcomed by PIAB. Early in June the High Court found in favour of the guidelines’ constitutionality and their application by PIAB. A second judgement in the High Court this month found that PIAB had applied the guidelines appropriately and that PIAB’s obligation to give reasons had been complied with.
The PIAB believes that these two judgements will result in more cases being resolved through its claims resolution service.
Carroll concluded: “Small businesses, especially those involved in childcare, leisure or hospitality along with community and sports organisations, are facing major problems with the price and availability of insurance cover. This is a key issue as the economy continues to open up. With consumers and business facing the costs of inflation, this report shows major potential for savings in claims costs and therefore insurance costs.”
“This data should be considered by both claimants and respondent/insurers to make informed decisions, and to opt for the PIAB service which ensures fair awards and far lower costs.”
