A recent survey conducted for the Injuries Resolution Board (IRB) revealed that a third of adults in Ireland perceive the personal injury claim process as unjust. This sentiment is largely driven by the prevalence of fraudulent claims and what is seen as excessive compensation amounts. However, the majority of those surveyed, two-thirds, felt that claims are typically lodged for valid reasons.
The survey also discovered that four out of 10 participants believe claims are pursued due to the simplicity of the process and their monetary benefit. Over half of respondents admitted they were unsure about the fairness of the process, while 33% deemed it unfair and just 13% thought it was fair.
Interestingly, about 50% of participants felt that the claims process, along with any legal fees, influenced insurance costs. Half of those surveyed experienced a rise in their premiums in 2023 and 2024, with a mere 10% witnessing a reduction.
The research, conducted by Amárach Research on behalf of IRB and involving 1,000 adults, unearthed that almost one in four individuals had been hurt in an accident, yet only one-third of those individuals, equating to roughly 13% of the population, went on to file compensation claims. Those who were 55 or older were notably more inclined to have been in an accident and to have made a claim.
The majority cited injury and loss compensation as their main reasons for raising a claim, whereas 20% attributed it to lawyer advertising.
The survey results were disclosed at a conference held to mark the board’s twentieth anniversary, formerly called the Personal Injuries Assessment Board. Delegates from the State Claims Agency, lawyers, insurers, insurance reform advocates, and business organisations were in attendance. The conference featured discussions from Government Ministers, and both international and Irish experts, discussing the influence of personal injury area reforms, and pondering the challenges and possibilities for the future.
Rosalind Carroll, the CEO of the Injuries Resolution Board, stated that last year the board granted awards totalling €170 million, which is approximately €100 million less than the 2019 amount. She mentioned an increase in the influx of more severe and fatal injury cases to the board, emphasising the importance of recognising the personal impact of these claims.
The personal injuries domain has seen significant shifts, largely due to the 2021 court-endorsed guidelines which reduced awards for predominantly minor injuries, alongside the board’s recently inaugurated service for mediating claims, it has been stated. The board, since its establishment in 2004, has managed over 500,000 claim applications, reviewed 180,000 claims and allocated over €4 billion to those harmed. Accepted compensations surpassed €2.2 billion, keeping these claims out of the court system, thus Zresulting in savings for claimants and insurance policy owners of over €1.1 billion.
The savings of €1.1 billion, which would have been expended on legal costs, is a point of pride for the board, as it recognises the impact insurance costs have on everyone’s lives, explained Ms Carroll. She further said the board’s goal is to support both the injured parties and the respondents in fairly settling claims, following the same guidelines as the courts, but in a non-confrontational setting, which also provides societal benefits.
Dr Lauren Swann, Head of Research and Policy at the Injuries Resolution Board, disclosed data from 2023 showing the board received over 20,263 claims, a 10 percent increase from 2022, however it is 30 percent less than the 2019 figure. Awards granted numbered at 9,144, an increase of 13 percent from 2021, with an acceptance rate of 48 percent. The average award value rose to €18,537, up from €15,857 in 2022, but this is 23 percent less than the average 2020 award given under previous guidelines.
Speaking at the conference, Minister of State for Company Regulation Dara Calleary indicated that the Government’s insurance reform programme, which designed 66 steps to enhance the competitiveness and consumer-friendliness of Ireland’s insurance sector, was nearly fully implemented with last year’s introduction of new duty-of-care legislation. However, the tasks of Government and all stakeholders must be maintained, he added.
He informed that in lieu of entering into costly legal battles, over a third of the workforce injury claimants, 37 percent, have chosen to mediate their claims via the board’s mediation service introduced in December. This mediation service was recently expanded to cover public liability claims and will be available for vehicle claims by year-end.
British English Response: Neale Richmond, the State Minister for Insurance, advised that insurance providers have an obligation to mirror the effects of personal injury award reductions due to reforms in their premium pricing. He further noted that it’s imperative to keep a vigilant eye on the legal expenses in terms of personal injury claims, emphasising the need for intensifying efficiencies.