Last week, it was announced that the Minister for Justice, Charlie Flanagan, was set to ask Chief Justice Frank Clarke to set up a temporary judicial body to cap insurance claims, said to be the result of an inordinate amount of personal injury awards in Ireland. Under the authority of this interim body, such claims would be capped in order to reduce high insurance charges brought up by false or fraudulent claims.
The desire to implement the measure has been hastened after a report was released by the Personal Injuries Board Commission in September 2018, stating that the necessary reform in this area has been moving too slowly. The report recommended that Ireland adopt a judicial guidelines system similar to that in place in the United Kingdom, the Insurance Fraud Enforcement Department.
The Junior Finance Minister, Michael D’Arcy, has stated that he hopes the Book of Quantum – the guideline used to determine amounts awarded in personal injury cases – could be “recalibrated”.
Personal Injury Claims in Ireland
In Ireland, awards for personal injuries are currently among the highest in Europe, seemingly due to the lack of penalties people face in the Republic for fraudulent claims. In some cases, insurance companies are paying out personal injury claims without the sufficient medical documentation to determine the scope and severity of the injury.
Observing the relevant data, the rate of personal injury claims in Ireland has escalated in recent years. The report by the Personal Injuries Commission noted that awards for soft tissue injuries in Ireland were over four times higher than UK counterparts, averaging €17,338 compared to €3,984.
The absence of sufficient penalties for phony claims fuels the cycle of reoffending, and guidelines for personal injury damages are sorely needed as soon as possible. However, it would also be important that any new measures introduced are not perceived as being too rigid, due to various contributing factors such as a person’s occupation and/or lifestyle. A combination of flexibility and consistency would undoubtedly produce the best results once all relevant factors and information are taken in to consideration.
If you have had an accident and are entitled to make a claim call us to get appropriate advice from a Solicitor.In spite of the current discussion insurance is there to protect and compensate you in the case of an accident
" In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement."