The number of personal injury claims made to the Injuries Resolution Board last year rose 10%. However despite the increase, the total volume of claims at 20,263 remained 35% lower than in 2019.
Motor liability claims were up 14% in number compared to a year earlier, public liability claims rose 3% and employers liability claims edged up just 1%.
The Injuries Resolution Board, formerly known as PIAB stated in a new report that the 10% increase in claims made to it during 2023, resulting in €170m being paid out in personal injury awards.
The average value of awards made by the board last year was €18,537 – down 23% compared with the 2020 figure, which was assessed under the Book of Quantum.
The median award in all categories was €11,650 – a drop of 37% compared with the 2020 figure. The average award was, however, was up from €15,857 in 2022.
A breakdown of average figures by category showed:
- Motor liability €16,180 (up from €13,975 in 2022),
- Public liability €20,396 (up from 16,833),
- Employer liability €27,610 (up from €22,989).
The board says that €75 million in legal costs was saved last year by its resolution of claims. The average timeline to assess a claim last year was 11.3 months.
Writing in the body’s annual report, chief executive Rosalind Carroll said that this year’s increase was mainly due to the jump in motor claims, with employer and public-liability claim figures relatively stable.
Carroll added that total claim volumes remained significantly lower than in 2019, with the board seeing signs of a decline in claims for minor injuries since the introduction of the Personal Injuries Guidelines in 2021.
“The claims environment is very different than before the pandemic, and while the claim volumes are seeing some growth now, the level of growth remains relatively low,” Carroll stated.
“It is important when looking at changes in claims values in Ireland, not just to focus on average awards values but the decline in the number of claims being made, with total claim volumes remaining 35% lower than in 2019 and the total value of compensation awards now €105 million lower than 2019,” she said.
In April 2021, new personal injury guidelines were introduced aimed at reducing the size of pay-outs.
In April this year, the Supreme Court upheld the Personal Injuries Guidelines as legally binding and constitutional. The IRB said it is “anticipated that acceptance rates will continue to rise”.
Minister of State Dara Calleary said that the results are a testament to the effectiveness of collective efforts to create a more stable insurance environment for the benefit of the economy and society alike. “I want to see all this transformative change passed onto business and consumers via reduced premiums,” he said.
Reacting to the new data, Insurance Ireland said it shows continued positive trends in the area of claims amounts. “They once again illustrate that the work on insurance reform by Government with industry is making a real impact,” said Moyagh Murdock, CEO of Insurance Ireland.
“Nevertheless there are some clouds on the horizon, which cannot be overlooked, such as the level of costs associated with litigation, which have not decreased in line with the overall reduction in awards, and significant increases in motor damage costs.”
NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.