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Irish Independent
a day ago
- Business
- Irish Independent
Blow for judges as minister decides against proposed 17pc increase to personal injury awards
It comes after a committee of judges had made a controversial proposal to hike personal injury award guidelines by almost 17pc. Insurance companies had warned that such a rise would have led to even more premium rises. The proposal from the Judicial Council needed to be approved by a change in the law to effect it. Personal injury guidelines are used by the courts and the Injuries Resolution Board when assessing injury claims. But it is understood that the proposal from the judges will not be voted into law. A memo prepared by Justice Minister Jim O'Callaghan, to be presented to a Cabinet sub-committee on insurance reform, states that he will 'lay the guidelines in the Oireachtas but not move a resolution'. This effectively means the recommendation of the Judicial Council to increase the guideline award levels will be laid before the Houses of the Oireachtas but not effected by legislative change. Next week's full Cabinet meeting will be presented with Mr O'Callaghan's memo which effectively says the Government should not move to increase injury award levels. This is seen as a major blow for the legal fraternity, but a victory for the likes of the Alliance for Insurance Reform, business lobby group ISME, Insurance Ireland, and insurance companies. All of these groups said lawyers would be the main winners from any hike in the award guideline levels. And the National Competitiveness and Productivity Council criticised the fact that the judges did not consult the Injuries Resolution Board before proposing higher award levels. Business and consumer groups claim that higher awards will act as a greater incentive for lawyers to encourage their clients to avoid settlements in the Injuries Board, which does not pay legal costs, and litigate the claims instead. Lawyers get huge legal fees for litigated cases. The Central Bank has found that in liability claims the average award assessment of the board and one that is litigated both come in at €24,000. Legal fees for cases settled through the Injuries Board average €597. However, litigated cases have average legal costs of €24,786. A sub-committee of the Cabinet, set up to drive insurance reform, discussed the matter today. It is understood a memo presented to the sub-committee by Mr O'Callaghan states the also plans to amend the Judicial Council Act that would mandate judges to review award guidelines over a longer period than the current three years. Judges will be forced to engage with the Injuries Resolution Board when considering changes to recommended award levels. There is also mention of a commitment to legal reform, in the memo. However, Minister O'Callaghan is also expected to convey his concerns to the sub-committee on insurance reform on the impact not increasing award levels could have on the Injuries Resolution Board. There is a risk that the judiciary could start making increased awards outside of the guidelines. At the same time the Injuries Board will not be permitted to increase its awards as it is obliged to impose the guidelines in place. There is a risk that this combination could drive claimants back to the courts with a consequent increase in legal costs which will make the claims process more expensive. This is something the minister is said to be cognisant of and plans to keep under review.
Irish Independent
a day ago
- Business
- Irish Independent
Blow for judges as Jim O'Callaghan decides not to amend law to increase personal injury awards
The Government is not going to legislate to increase personal injury award levels, in a move that is seen as a major blow to the legal sector. It comes after a committee of judges had made a controversial proposal to hike personal injury award guidelines by almost 17pc. Insurance companies had warned that such a rise would have led to even more premium rises. The proposal from the Judicial Council needed to be approved by a change in the law to effect it. Personal injury guidelines are used by the courts and the Injuries Resolution Board when assessing injury claims. But it is understood that the proposal from the judges will not be voted into law. A memo prepared by Justice Minister Jim O'Callaghan, to be presented to a Cabinet sub-committee on insurance reform, states that he will 'lay the guidelines in the Oireachtas but not move a resolution'. This effectively means the recommendation of the Judicial Council to increase the guideline award levels will be laid before the Houses of the Oireachtas but not effected by legislative change. Next week's full Cabinet meeting will be presented with Mr O'Callaghan's memo which effectively says the Government should not move to increase injury award levels. This is seen as a major blow for the legal fraternity, but a victory for the likes of the Alliance for Insurance Reform, business lobby group ISME, Insurance Ireland, and insurance companies. All of these groups said lawyers would be the main winners from any hike in the award guideline levels. ADVERTISEMENT And the National Competitiveness and Productivity Council criticised the fact that the judges did not consult the Injuries Resolution Board before proposing higher award levels. Business and consumer groups claim that higher awards will act as a greater incentive for lawyers to encourage their clients to avoid settlements in the Injuries Board, which does not pay legal costs, and litigate the claims instead. Lawyers get huge legal fees for litigated cases. The Central Bank has found that in liability claims the average award assessment of the board and one that is litigated both come in at €24,000. Legal fees for cases settled through the Injuries Board average €597. However, litigated cases have average legal costs of €24,786. A sub-committee of the Cabinet, set up to drive insurance reform, discussed the matter today. It is understood a memo presented to the sub-committee by Mr O'Callaghan states the also plans to amend the Judicial Council Act that would mandate judges to review award guidelines over a longer period than the current three years. Judges will be forced to engage with the Injuries Resolution Board when considering changes to recommended award levels. There is also mention of a commitment to legal reform, in the memo. However, Minister O'Callaghan is also expected to convey his concerns to the sub-committee on insurance reform on the impact not increasing award levels could have on the Injuries Resolution Board. There is a risk that the judiciary could start making increased awards outside of the guidelines. At the same time the Injuries Board will not be permitted to increase its awards as it is obliged to impose the guidelines in place. There is a risk that this combination could drive claimants back to the courts with a consequent increase in legal costs which will make the claims process more expensive. This is something the minister is said to be cognisant of and plans to keep under review.
Irish Times
a day ago
- Automotive
- Irish Times
More than €4bn awarded in personal injuries compensation by independent State body in past 20 years
More than €4 billion has been awarded in compensation for personal injuries over the past two decades by the Injuries Resolution Board , with last year seeing a three per cent increase in the number of applications. Established in 2004, the independent State body aims to resolve personal injury claims without the need for litigation. Since then, more than 535,000 personal injury claim applications have been received, more than 179,000 of which resulted in compensation totalling more than €4 billion. An estimated €1.2 billion in savings have been made in 'avoided legal costs' over the past 20 years, according the Injuries Resolution Board. READ MORE Some 20,837 personal injury claims were submitted in 2024, resulting in €168 million being awarded in compensation. [ The Irish Times view on personal injuries claims: going to court is rarely worth it Opens in new window ] The number of claims submitted rose by 3 per cent from the previous year but was still 33 per cent lower than in 2019, the board's annual report, published on Wednesday, indicates. This 3 per cent increase was attributed to the introduction of the new Garda Compensation Scheme which added to the overall portfolio of claims the board deals with. Under that scheme , which provides for compensation for personal injuries suffered by a current or former garda as a result of a 'malicious incident', 519 applications were received and 185 awards made by the Injuries Resolution Board. [ Garda whistleblower claims financial penalisation after voicing concerns about equipment Opens in new window ] The amount awarded in compensation overall was down 39 per cent from the €275 million awarded in 2019. The median award stood at €13,100 in 2024, up by 12 per cent from the previous year, though 29 per cent lower than in 2020. Motor liability accounted for 69 per cent of awards, followed by employer liability (17 per cent), public liability (13 per cent) and garda compensation (2 per cent). The highest amount awarded last year was €634,875 while the lowest awarded was €69. The number of motor liability claims received (12,041) increased by 4 per cent last year, continuing a gradual increase across recent years. Some 60 fatal claim applications were submitted in relation to road traffic collisions, a 7 per cent increase from 2023 and a 20 per cent increase from 2022. Claims for employer liability, meanwhile, decreased by 5 per cent in the same period to 3,497 while the number of public liability claims remained unchanged from 2023 at 4,780. The number of fatal claims arising from workplace incidents, meanwhile, remained unchanged at 15, while fatal claims relating to incidents in public settings fell from 42 in 2023 to 37 in 2024. Noting a decrease in employer liability claims and no change in the number of public liability claims, Injuries Resolution Board chief executive Rosalind Carroll described this as a 'very positive trend.'
RTÉ News
2 days ago
- Automotive
- RTÉ News
Injuries board saves €76m over claims not proceeding to litigation
A total of €76 million was saved in "avoided costs" by the Injuries Resolution Board (IRB) last year, due to claims not proceeding to litigation. That's according to the Board's 2024 Annual Report, which also says that insurers and respondents in 70% of claims submitted to the IRB consented to it resolving them. Meanwhile, half of the board's claim assessments last year were accepted by both the claimant and respondent (up slightly from 48% in 2023). The State body was established in 2004 to help improve the process of resolving personal injuries claims, and to offer an alternative to what it calls "unnecessary litigation". Overall claims handled by the IRB rose slightly last year (+3% to 20,837), however, the figure remains a third (33%) lower than 2019 claim volumes. The report says that last year's increase in claims was driven by the introduction of the new garda compensation scheme, which added to the overall portfolio of claims dealt with by the board. The board considers 2019 the most relevant year for comparison with 2024, as it was before the Covid pandemic - during which claim numbers were distorted by the impact of lockdowns and reduced business and personal activity. The total value of awards made by the IRB last year was €168 million, which was down by €2 million on the previous year, but was 39% lower than the 2019 figure. The highest award approved was €634,875, with the lowest award amounting to €69. The 2024 report also shows the average timeline to assess a claim was 11.2 months, while following this, over half of all compensation awards were made within nine months. Motor liability accounted for nearly seven out of ten claims (69%), with a median motor award value of €12,541 last year (down 30% on 2020 figures). Public liability (down 34% since 2020 to €13,660) and employer liability (-31% to €16,255 since 2020) median claim awards have also fallen between 2020 and last year. The median award across all categories for 2024 was €13,100, which was up 12% on the previous year but down 29% on 2020. Twenty years since Injuries Resolution Board set up 2024 marked the 20th year of the IRB's operation, which was originally set up as the Personal Injuries Assessment Board. Since 2004 the State body has dealt with over half a million personal injury claims, making 200,000 assessments that resulted in over €4 billion in awards. Over that time it says an estimated €1.2 billion has been saved in avoided legal costs by claims not going through litigation. Commenting on the 2024 report, Injuries Resolution Board Chief Executive Rosalind Carroll said "the enhancement and expansion of our services to include mediation and the Garda Compensation Scheme, increases our potential to resolve a greater number of claims and demonstrates the difference we can make to individuals who have suffered an injury through no fault of their own, and at the same time bring with this savings on both time and costs. "We exist to offer an alternative to litigation to provide a fair, impartial, non-adversarial route to resolve injury claims in a faster, and less stressful way. We have delivered on this successfully over the last twenty years, with a very different environment today then there was 20 years ago," she said. "When looking at 2024 of note is that claim volumes for personal injury remain 33% lower than 2019, and therefore it is important to consider the impact on this in overall value of claims in Ireland. In particular, in 2024 there has been no increase in claims in public liability and a 5% decrease in employer liability." Savings generated by IRB not being seen by policyholders The Alliance for Insurance Reform said the IRB annual report "makes clear that significant savings are being generated due to avoided legal costs and the volume of claims coming down by a third". Alliance board member Ivan Cooper said: "these facts alone warrant meaningful and sustained reductions in insurance premiums, but instead we continue to see insurance companies prioritise profits over their policyholders. "There is no justification for liability premiums for businesses, sports, community and voluntary groups to be increasing and yet they continue to do so." The IRB report comes as the Government is considering a recommendation by the Judicial Council to increase personal injuries guidelines by nearly 17%, which - if approved - would have a knock-on effect on the value of compensation awards. The alliance has said that "in the face of ever-rising insurance premiums we urge the Government not to increase personal injury awards by 16.7% – something they are actively considering. To do so now will guarantee the cost of insurance goes up even further." Insurers have also urged the Government not to increase the guidelines, while yesterday the National Competitiveness and Productivity Council also advised the Government to reconsider the increase. Cabinet is set to make a decision on the matter in the coming weeks. Last week a spokesperson for Minister for Justice Jim O'Callaghan, whose brief has responsibility for the guidelines, said he "is acutely aware of the impact that any such amendments to increase damages for personal injuries will have on insurance premiums, competitiveness and the business community". They added: "He is further aware that any decision taken must provide for the effective operation of the Personal Injuries Resolution Board and the personal injuries architecture contained within the Judicial Council Act 2019 which has resulted in significant reductions in damages for personal injuries in recent years".
Irish Times
3 days ago
- Irish Times
Personal injury award levels fell by 45% to about €150m last year, Courts Service says
The level of personal injury awards across the courts almost halved last year to about €150 million, according to the Courts Service's annual report. It also notes that new High Court planning cases more than doubled and some 25,000 applications concerning protection from domestic violence were filed. After new laws providing for restraining/antistalking orders came into operation last September, more than 300 applications were received by the end of the year, it shows. Published on Monday, the annual report for 2024 shows personal injury awards levels reduced by 45 per cent compared to 2023. The number of new cases, at almost 13,000, was down by about 445 on 2023, but 41 per cent down on the almost 22,000 cases lodged in 2019. READ MORE Awards by the High Court, including in medical-negligence cases, fell from €256 million in 2023 to €135 million last year. Circuit Court awards, capped at €60,000, dropped from €16 million to less than €13 million, and District Court awards fell from €2.2 million to €1.5 million. The 'most noteworthy' trend in personal injuries in the High Court was, according to the report, the reduced impact of the judicially approved personal injuries guidelines which became operational in April 2021. While it states the guidelines have not resulted in major increases in personal injuries applications to the District and Circuit Court, the Injuries Resolution Board has noted more cases are coming before and are being finalised by the board. New cases coming into the High Court's specialised planning and environment list increased to 241 from 108 in 2023. The number of cases finalised was 253, up from 129 in 2023. The Central Criminal Court imposed 434 prison sentences for rape/attempted rape with 62 per cent of sentences exceeding 10 years. The total included nine life sentences, 261 terms of more than 10 years, 106 of between five and 10 years and 54 of between two and five years. Among 531 other prison sentences for other sexual offences, there were 109 partly suspended prison sentences, 14 fully suspended and four detention orders for juveniles. The District Courts received 25,270 new applications for protection under domestic violence law, a drop of more than 700 on the 2023 figure but 23 per cent higher than in 2019. In the first four months of a new law providing for restraining or antistalking orders coming into operation, 314 applications for such orders were received by the District Courts, with 133 full and 107 interim restraining orders granted. Supreme Court judge Ms Justice Elizabeth Dunne, chair of the Courts Service board, and its chief executive Angela Denning addressed a launch event at Green Street courthouse in Dublin on Monday about the report. The report was presented to the Minister for Justice, Jim O'Callaghan, at the event. It notes continued progress in the service's modernisation programme, such as 165 technologically-enabled courtrooms and improved information for court users. The report reveals continuing delays in some courts lists, including the Central Criminal Court. While cases on hand there fell 16 per cent last year, they remain 35 per cent higher than pre-pandemic levels and the volume of new cases was 40 per cent higher in 2024. The appointment of additional judges has seen the case-disposal rate increase by 73 per cent over 2019 figures, the report noted. A 45 per cent rise over two years in applications for supervision and care orders for children is reported with 21,684 new applications last year, up from 17,583 in 2023. The figures include multiple applications and orders. Other trends include a 16.5 per cent reduction in drugs cases in the District Court over six years while larceny/fraud/robbery cases show a 15.3 per cent increase year on year and public order and assault cases an increase of almost 10 per cent year on year. About 184,000 new road traffic offences came before the District Courts last year, an increase of more than 8 per cent year on year but marking an overall 18 per cent reduction over six years. There were 5,004 divorce applications last year, down from 5,218 in 2023 and 5,551 in 2022. The report shows last year was another busy period for the courts, with more than 574,000 civil and criminal cases and appeals incoming, the vast bulk coming before the District Courts. More than 390,158 criminal matters and appeals were incoming while new civil case numbers across all courts increased to 184,000, reflecting a continuing trend with case numbers now 31 per cent above the 2021 level. New possession cases regarding property rose to 1,135 from 1,091 in 2023, but the number of possession orders granted by the Circuit Court fell to 141 from 212 in 2023. There were 22,584 new debt-recovery cases, marking a 31 per cent increase over two years. Sixty new cases sought forfeiture of property alleged to represent proceeds of crime, up from 43 in 2023. There were 89 company wind-up applications, up from 44 in 2023, with more than one in three presented by Revenue.
