Reduction in average value of personal injury awards
- October 28, 2021
- Jonathan Earl
- Comments Off on Reduction in average value of personal injury awards
The average value of personal injury awards has dropped.
Personal injury awards have dropped sharply since the introduction of new guidelines by the judiciary, a new report shows. Nearly half of all the claim assessments being made by it are now for less than €10,000. This compares with 12 per cent of awards previously.
A report published on October 15th by the Personal Injuries Assessment Board (PIAB) shows average general damages have decreased by 46%. The average PIAB award is now €14,000 compared with €24,000 in 2020. 71% of awards are now €15,000 or less compared to 30% of PIAB awards in 2020.
The Personal Injury Guidelines were adopted by the Judicial Council on 6 March 2021. The Minister for Justice, Helen McEntee TD, appointed Saturday 24 April 2021 as the commencement date of the Personal Injuries Guidelines.
The Guidelines set out the level of damages that may be awarded or assessed in respect of personal injuries. The Guidelines reduce award levels for most categories of personal injury and will be used by both the Personal Injuries Assessment Board (PIAB) and the courts to assess compensation in such claims.
Based on more than 2,600 claims during the period, PIAB says the level of reduction equates to a total drop in award values over the period of €25.6m.
Minister of State at the Department of Justice, Hildegarde Naughton TD, said:
“I welcome this latest PIAB data, which clearly shows the Guidelines are having a significant positive impact in reducing personal injury awards.
However, PIAB also found that the rate of acceptance of its awards by claimants fell from 50% to 41% during the period, something it said was not unexpected. However, most people who reject the award suggested by PIAB go on to settle with the insurance company prior to their case being heard in court.
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 email@example.com.