Minister wants to 'maintain' insurance reforms before approving personal injury pay-out hikes
Fianna Fáil's Jim O'Callaghan told
The Journal
today that he has yet to make a final decision on the judicial council's proposal to increase personal injury pay-outs by 17%, which is due to be discussed by cabinet later this month.
It comes after a report by the Central Bank yesterday said motor insurance premiums are set to continue rising as the number of claims made and repair costs involved are increasing.
As of May 2025, drivers have seen an 8% increase in motor insurance premiums in the last 12 months, the report said.
Asked about an upcoming memo, due to be discussed by ministers this month, O'Callaghan said discussions are still ongoing.
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'In the first instance, no decision has been made in respect of the issue about the person injuries guidelines,' he told
The Journal.
'I am, at present, considering them.'
He added that he is 'very conscious' of the changes and is engaging with other departments and ministers as a result of the campaigning for insurance reforms that have been completed in recent years.
'We need to maintain [the progress],' he said. 'I am engaging with other cabinet colleagues, we'll have discussions in respect of it. I think government will make a decision on this matter shortly.'
O'Callaghan added that he was not going to make a decision in respect of the judicial council recommendation by himself and wanted to include other members of government on the decision.
'I have to take account, for instance, of the Central Bank's Claims' Database Report,' he said, referencing its finding that there's already no financial benefit for those who make claims to have their case removed from the Personal Injuries Resolution Board.
He added that government will make a decision on the matter in due course.
Reform activists, such as the Alliance For Insurance Reform, have said that there will be no check on costs if ministers approve the proposed increases. It claims that the cost of insurance premiums is already too high, and increasing monthly.
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