It is true that PRSI encounters the risks associated with the employment or out of the employment. The person should get some benefit through PRSI scheme or Social Insurance Fund when the person got sufferance in the employment in any manner. Therefore, the person or the authorised representative or nominee/s is only eligible persons to receive the benefits out of PRSI. However, in some cases, by usage of assignment system such benefits are being transferred to outsiders. Here Assignment process means valid authorisation of employee to outsider to receive the benefits on behalf of him. Such assignment process is not correct. The insured person incurs loss but the outsider will receive benefit through the assignment process. It is nothing but total damage of the concept of social insurance.
When the insured person died, the legal representatives or other dependents of the insured person can claim the claim for the refund or other benefit. Typically, creditors or assigned persons i.e. outsiders are claiming for such benefits out of the PRSI funds. Hence, the system of assignment should be withdrawn from the law. In addition, amendment of the Irish Law required.
Not only the risks pay-related social insurance (PRSI), but such other risks like Third party motor insurance, Solicitors professional indemnity insurance, Professional indemnity insurance cover for insurance and reinsurance intermediaries, Aircraft insurance, Shipping insurance are also associated with Assignment system under Irish Law. It means total insurance products directly hit with system of assignment. Therefore, the total system of assignment should not be considered in the Irish Law and the concept of social insurance to the public must be achieved.