'Conspiracy' on Insurance Costs (28/April/2003) Sections of legal profession accused of undermining bids to cut €600m annual fees. "VESTED interests" are preventing establishment of the Personal Injuries Assessment Board, aimed at reducing the cost of insurance, employers' group IBEC claimed yesterday. Director of enterprise Brendan Butler accused "certain sections" of the legal profession of attempting to "discredit" any such board and prevent a reduction in the cost of insurance. Mr Butler said personal injury compensation cost around €2bn annually, €600m of which was taken up in legal fees. The Department of Justice should also act "speedily" to implement measures supporting a reduction in insurance premiums, he said. These include: * Measures to tackle spurious and exaggerated claims. * A review of legal costs. * Setting up a panel of trained judges operating to a set of guidelines on general damages. "One of the Government's key platforms in addressing the insurance crisis was the establishment of the Personal Injuries Assessment Board (PIAB)," Mr Butler said. "While the board was established on an interim basis last October, it has not yet been set up on a statutory basis. "At the time IBEC expressed concern that vested interests would continue to hinder progress on key issues and the failure to establish the PIAB would appear to support this argument. IBEC is concerned that certain segments of the legal profession will continue in their attempts to discredit the potential of the board to reduce the cost of insurance." IBEC claims personal injury compensation now costs over €2bn, with €600m-plus taken up in legal costs. An IBEC survey on insurance costs published in September showed 91pc of firms found insurance premiums had an impact on profitability. The Law Society rejected Mr Butler's comments, saying the society was not opposed to a personal injuries board. Director general Ken Murphy said details on how the board would operate, insurance firms' commitment that savings would be passed to consumers and a cost benefit analysis would be needed before the board could be set up on a statutory basis. Paul Melia Back to Media Index