Latest news with #InjuriesResolutionBoard
Irish Independent
3 days ago
- Business
- Irish Independent
Transparency about where money goes can help get a grip on insurance costs
The open consultation process that informed this plan is a model for how policy reform should be approached, enriched by diverse perspectives, with over 70 submissions focused on outcomes that benefit consumers, businesses, and the wider economy. The plan sets out a structured schedule of actions and is built around six core themes, which reflect a comprehensive approach to reform. The emphasis on legal reform, innovation, and affordability aligns well with the challenges facing the sector. It is also encouraging to see 10 priority actions, which target the most pressing issues. The plan's emphasis on enhancing the efficiency, authority, and impact of the Injuries Resolution Board (IRB) is welcomed. Action 3 is a priority reform aimed at reducing litigation, lowering costs, and improving the speed of claims resolution. Preventing claimants from modifying their claims post IRB and introducing legal costs for its claims are pragmatic steps that will encourage early resolution and discourage unnecessary litigation and delays. This will promote consistency in how injuries are assessed as currently, the IRB and the court are effectively assessing different cases due to the introduction of additional reports for those claims going into court. This has prevented the IRB from reaching its full potential. Another positive step is the commitment to report on accepted IRB assessments, rather than just those issued, half of which are typically rejected. This will enhance transparency and support future improvements. Action 4 proposes benchmarking Irish injury awards against those in the UK and other European countries. This raises questions, as similar analysis was believed to have informed the 2021 Personal Injuries Guidelines. Insurers are now compiling data to support this work. While the focus is currently on the UK, it's vital that the scope includes European jurisdictions with less prevalent compensation cultures. These systems offer valuable insights into achieving fair compensation while maintaining market sustainability. It's been over 20 years since the Troika identified Ireland's high legal costs as a barrier to competitiveness. Yet legal fees remain a major driver of insurance premiums. The development of legal cost scales under Action 6 is long overdue, having first been proposed in the 2020 Action Plan. Although scoping was completed in June 2022, further progress was deferred pending sufficient data on the impact of the Judicial Council's Personal Injuries Guidelines, likely in the hope that reduced awards and litigation would lessen the need for further reform. However, legal costs remain a persistent issue. According to the 2024 National Claims Information Database (NCID) mid-year report, motor injury claims under €100,000 that settled through litigation saw legal costs rise on average to €18,859, compared to just €836 through the IRB, some 22 times higher. These costs now represent 94pc of the average compensation award and 48pc of the total claim spend in the litigation channel. While average compensation has fallen by 17pc, the total cost per claim has only decreased by 1.6pc, meaning the benefit of lower awards has been largely offset by rising legal fees. Similarly, tougher penalties and enhanced intelligence sharing on fraud in Action 12 would help protect honest policyholders and restore trust in the system. Further investment in the Garda Fraud Bureau will be key to ensuring the success of this initiative. Action 21 proposes amendments to the Judicial Council Act that could extend the review period for the guidelines from three to seven years. The current review cycle is too short to allow reforms to take root, contributing to instability and unpredictability, which are precisely the issues the guidelines are meant to address. These changes, along with mandated consultation with the IRB in the review process and clearer Oireachtas oversight, will help ensure that the guidelines remain relevant and balanced. While proposals such as the introduction of pre-action protocols and case management in personal injury claims have not been prioritised in either the 2020 or 2025 reform plans, they have the potential to deliver significant impact. Pre-action protocols encourage early resolution of claims and reduce the need for litigation. Where court action is necessary, structured case management would ensure claims are handled efficiently. Together, these measures could help reduce legal costs, speed up outcomes, and ease the burden on all parties involved. Learn more Insurance reform is not a one-time fix. It's an ongoing process that requires persistence, adaptability, and more importantly, collaboration between government, industry, legal professionals, and consumers. The new Action Plan offers a strong foundation. It reflects a shared commitment to change and a recognition that lasting progress only happens when insurers, policymakers, legal professionals, and consumers work together. Lisa Dennehy is chief claims officer at Aviva Insurance Ireland DAC
Irish Daily Mirror
3 days ago
- Irish Daily Mirror
Man becomes second e-scooter driver to die on Irish roads this year
A man has become the second e-scooter driver to die on Irish roads so far this year. Late on Sunday night gardaí and emergency services were dispatched to the scene of a two vehicle collision on the Old Navan Road in Blanchardstown, Dublin 15. The collision involved a car and an e-scooter. A man in his 30s, who was the driver of the e-scooter, was taken to James Connolly Hospital. He was sadly later pronounced deceased. Gardaí say no other injuries were reported following the collision. The man becomes the second e-scooter driver to die on Irish roads so far this year. Young father Jack Goss, 21, sadly lost his life after a road traffic incident on the Cappagh Road in Finglas, Dublin 11. The accident occurred on Father's Day, June 15. He was taken to Connolly Hospital in Blanchardstown but passed away the following day. In a death notice, his heartbroken family said that he brought 'so much love, kindness and joy' into their lives. It continued: 'Jack's incredible spirit and big heart will forever be missed and lovingly remembered by his family, friends, loved ones and his community whom he loved.' Jack Goss (Image: Supplied by family) According to garda statistics, 96 people have died on Irish roads so far this year. This is 10 fewer when compared to the same period in 2024. Last year, four people died following a collision involving an e-scooter. This includes 15-year-old Gilbert Collins and Avuzwa Idris, 17, who sadly lost their lives after an accident involving a bus in Waterford. Cyclists and e-scooter users are 11 times more likely to sustain severe and serious injuries in road traffic collisions than motorists, according to a report by the Injuries Resolution Board. It found that in 2023, €9.8m was paid out in personal injury claims to injured cyclists and e-scooter users. Gardaí are appealing to anyone who witnessed the tragic accident on Sunday night in Blanchardstown to come forward. A spokesperson said: 'Any road users who may have camera footage (including dash-cam) and were travelling in the area between 10:40pm and 11:00pm, are asked to make this footage available to investigating Gardaí. 'Anyone with information is asked to contact Blanchardstown Garda Station on 01 666 7000, the Garda Confidential Line on 1800 666 111, or any Garda station.' Sign up to the Irish Mirror's Courts and Crime newsletter here and get breaking crime updates and news from the courts direct to your inbox.
Irish Independent
24-07-2025
- Business
- Irish Independent
Government set to impose a ‘code' on insurers in bid to track impact of reforms
The focus of the code will be on motor insurance, which has been rising now for almost two years. The Government aims to 'enhance transparency in insurance premiums' by working with the insurance industry, according to the latest Action Plan for Insurance Reform, which is due to be launched today. A feasibility study is to be carried out to see how data on insurance costs and premiums collected by the Central Bank can be used to shine a light on whether or not insurers are passing on the benefits they are getting from insurance reforms. The industry has benefited from a strengthening of the Injuries Resolution Board, changes to duty of care legislation, lower judicial guidelines on award payouts and the creating of a garda anti-fraud unit. In the past few weeks the Cabinet Sub-Committee on Insurance Reform, chaired by Tánaiste Simon Harris, decided to turn down a proposal from the Judicial Council to hike the judicial award guidelines by 17pc, in what was a huge boost to the insurance industry. In litigated cases, the legal fees average €24,786 The Action Plan will cover a period to 2029 and will set out a schedule of actions, for the departments involved and for other bodies such as the Central Bank. The Action Plan will focus on six key themes: transparency and affordability, competitiveness and availability, fraud, innovation and skills and climate protection and legal reform. Minister of State at the Department of Finance with special responsibility for insurance Robert Troy is spearheading the insurance reform agenda. Actions in the new plan include reviewing the powers of the Injuries Resolution Board to make it the default route for determining injury awards, and awarding legal fees for cases determined by the board rather than in the more costly courts. Benchmarking Irish awards against the payouts in the UK and the rest of Europe for similar injuries is among the tasks in the new action plan. Getting to grips with legal costs is also under consideration in the action plan. This will include examining the possibility of developing clear guidelines and scales of fees that lawyers charge for civil litigation, including in personal injuries cases. The Central Bank has found that legal fees for cases settled through the Injuries Resolution Board average €597 – however litigated cases have average legal costs of €24,786. Reviewing how insurance firms have implemented a ban on so-called 'price walking' – a practice that punished customers who stick with a provider – is also being considered, as is a move to provide greater transparency for customers of how premiums break down. Streamlining the authorisation process for new market entrants, and tougher penalties for fraud are also part of the agenda.
Irish Independent
09-07-2025
- 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
09-07-2025
- 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.
