Latest news with #PersonalInjuriesAssessmentBoard
Irish Independent
09-07-2025
- Automotive
- Irish Independent
Injuries Resolution Board saved claimants €76m in legal costs last year while awarding €168m in compensation
The IRB, the state body that allows people to resolve personal injury claims without incurring legal costs, said €76m was saved. It awarded €168m in compensation last year, it said, after releasing its annual report for 2024. For the most part, the IRB does not pay legal costs, despite most claimants using it being represented by a solicitor. It said it had 20,837 claims last year, up 3pc on 2023. This was 33pc lower than the 2019 level. It attributed the 3pc rise to the fact that last year was the first full year in which Garda Compensation Scheme claims came under its remit. The huge fall in the number of payouts approved by the board last year compared with 2019 is largely due to the near 40pc drop in the average value of personal injury awards after the Personal Injuries Guidelines were introduced in 2021. A proposal from judges to increase the award levels by 17pc was referred by the Cabinet yesterday to a sub-group on insurance reform. The €168m paid by the IRB last year was down 39pc from the 2019 figure of €275m. The typical, or median, award was €13,100. This is up 12pc on 2023, but 29pc lower than in 2020. Acceptance rates, where both parties agree to an IRB assessment, grew again, to 50pc last year, up from 48pc in 2023. If a settlement offer from the board is not accepted by the claimant or the insurer, it goes to litigation unless it is settled by the insurer. The median motor liability award agreed by the board last year was €12,500, down €5,400 on the 2020 figure. The IRB, formerly known as the Personal Injuries Assessment Board, deals with road traffic, public liability and workplace personal injury claims. The longer a claim lasted before being resolved, the higher the legal fees Most claims have to go to it first, and can go to court only if an assessment by the IRB is rejected by either side. The longer a claim lasted before being resolved, the higher the legal fees, the board said. Enterprise Minister Peter Burke said the annual report demonstrates how the IRB's model continues to deliver significant benefits. 'I want to commend the board for its ongoing work, which last year alone generated savings of €76m in avoided legal costs,' he said. IRB chief executive Rosalind Carroll said that in the 20-year existence of the board, 'more than €1.2bn was saved in avoided legal costs as a direct result of claims being resolved through the board, with €76m alone saved in 2024'. She said the IRB exists to offer an alternative to litigation to provide a fair, impartial, non-adversarial route to resolve injury claims. The Alliance for Insurance Reform welcomed the fall in the number and value of claims, but said policy-holders were not benefiting from this.
Irish Independent
20-05-2025
- Automotive
- Irish Independent
Decrease in motor claims raises questions about premium hikes
The value of the claims has also declined sharply, raising questions about why motor insurance premiums are rising so much. New figures from the Injuries Resolution Board show that motor accident claims have fallen by 30pc over the past six years. The value of the awards the body pays out are down by 41pc. The fall is due largely to judges agreeing to guidelines that recommended lower levels of awards four years ago. The Injuries Resolution Board, formerly known as the Personal Injuries Assessment Board, is the state body allowing people to resolve personal injury claims without having to go to court. It deals with road traffic, public liability and workplace personal injury claims. Claims can go to court only if an assessment by the board is rejected by either side. The guidelines were put in place by judges and later given legal standing. These recommend payouts are up to 40pc lower than previous recommendations. Despite a huge fall in award levels due to the guidelines, motor insurance premiums have been shooting up. Central Bank figures show the average cost is now €616 – a rise of €67 since 2022. Separate CSO figures show the cost of motor insurance rose for the 20th month in a row in April, up by close to 10pc in the year. A special report by the Injuries Resolution Board shows it awarded more than €700m in compensation for injuries sustained in almost 40,000 motor accidents in the six-year period between 2019 and last year. ADVERTISEMENT The report also calculates that more than €284m was avoided in legal fees by claims being resolved through the board process rather than through litigation during the six-year period. The median award for a motor claim is now €12,500, down 30pc on 2020. However, it is up 17pc on last year due to a rise in claims for psychiatric damage. The remit of the Injuries Resolution Board was recently widened to include psychiatric damage claims. Dr Lauren Swan, a statistician with the board, said: 'Motor liability claims were 30pc lower in 2024 than 2019 – despite a return to pre-pandemic traffic levels, increased number of registered vehicles and national driving licences, but claims were 4pc higher than 2023.' The Injuries Resolution Board received on average 33 road traffic accident claims per day last year. Dr Swan said: 'The total value of awards made in 2024 was €105.8m, a 5pc increase on 2023, but 41pc lower than 2019.' She said that this showed the 'significant impact of the personal injuries guidelines'. The fall in the number and value of motor claims comes at a time when insurers in this country are marking large profits. Indigenous general insurer FBD is reported to be planning to pay almost €19m in a special dividend to its shareholders later this year. That would bring total payments since early 2022 to almost €234m. Allianz Ireland has paid €300m to its German parent since the Covid-19 pandemic, although it did not pay a dividend to its parent last year, The Irish Times has reported. Insurance Ireland said that it noted the publication of research issued by the Injuries Resolution Board. It said 'the organisation has awarded over €700m in compensation for injuries sustained in almost 40,000 motor accidents over six years, and points to significant savings in legal fees by going this route rather than opting for expensive litigation. 'The report also outlines that motor liability claim volumes increased by 4pc from 2023 to 2024. 'The trend of settling personal injury claims through the expensive litigated route continues to add significant cost, despite the fact that it doesn't add to the levels of awards the claimant receives via either the Injuries Resolution Board process or directly settling claims with insurer,' it added.
