Stealth hike in Irish personal injury insurance payouts will hit us all in the pocket – Govt's timing couldn't be worse

The Irish Sun

13 hours ago

INSURANCE premiums are another rising cost in Ireland's affordability crisis, with prices outpacing those in many other European countries.
The average cost of
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The rises can cause real world problems for many people
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Minister for Justice Jim O'Callaghan
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Brian Hanley said prices outpace those in many other European countries
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That's almost double the price of the average
And there are fears they could shoot up even more, as the proposed personal injury award guidelines are to be increased by almost 17 per cent.
These rises can cause real world problems for many people. It could mean driving less or taking
Small
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Justice Minister
Brian Hanley of the Alliance for Insurance Reform, says the timing of an increase in personal injury awards couldn't be worse for policyholders.
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Now, in the middle of this affordability crisis, the Government is preparing to quietly make things even worse.
A proposal is set to be brought to Cabinet to increase personal injury awards by nearly 17 per cent, reversing much of the progress made over the past three years to bring a degree of balance and consistency to injury compensation in Ireland.
HIGHER THAN ENGLAND
Nobody disputes that people who suffer injuries deserve fair compensation, but Irish awards are already among the highest in Europe.
A 2019 analysis by the Personal Injuries Commission showed personal injury awards here were 440 per cent higher than those in
That kind of disparity isn't fair — it's unsustainable.
The move comes as the latest Central
More claims and rising repair costs — driven by inflation — have already pushed up the cost of cover. The one factor helping to contain those costs was a reduction in injury awards. Now, that progress risks being undone.
This is especially concerning for
Tracy Sheridan, who runs Kidspace play centres in Rathfarnham and Rathcoole and is a board member of the Alliance for Insurance Reform, sees the effect first-hand.
HARDER TO KEEP GOING
She says: 'Every month we're hearing about premiums going up. The only bright spot had been that awards had come down. If Government raises them now, there'll be no brake on rising insurance costs. It's just not sustainable.'
And it's not just businesses feeling the strain.
Across the country, voluntary groups, sports clubs and community organisations — many operating on a shoestring — are finding it harder and harder to keep going.
They're doing everything right: improving safety, reducing risk, keeping clean records. Yet when the insurance renewal comes around, the premium has risen again.
Here's the kicker: for liability insurance, which covers injuries that happen in places like community centres or sports pitches, the cost of claims has actually gone down — by ten per cent in the same six-month period.
In a properly functioning market, that should lead to lower premiums, but that hasn't happened. What's worrying is how little public discussion there's been about this planned increase.
The Government has been virtually silent for six months, even though this change affects every single policyholder in the country.
There's been no proper scrutiny from the
In 2021, new Personal Injuries Guidelines were introduced to bring more consistency and fairness. They helped align Irish awards more closely with international norms.
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Those reforms were a step in the right direction — but they are now at risk of being reversed before they've had a chance to deliver lasting impact.
The Central Bank's report makes another key point: legal costs blow up when claims are settled through litigation instead of the Injuries Resolution Board.
For liability claims under €100,000 — which account for 94 per cent of all personal injury cases — legal fees go from just €597 at the Injuries Board to over €24,000 for claims settled in litigation.
The average award for claimants is actually the same, so you're left asking who really benefits from almost 70 per cent of cases going into litigation? Not claimants and certainly not policyholders.
It's the public — motorists, business owners,
The Government must now pause this proposal and refer it to the relevant Oireachtas committee. We need transparency, data, and evidence — not quiet decisions made behind closed doors. Let's debate the facts, consult the experts and hear from the people who are paying the premiums.
Because if insurance keeps going the way it is going, the damage won't just be financial — it will be social and structural. Ireland needs a personal injury system that is fair for claimants, and affordable for everyone else.