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PI awards down 42% since new guidelines began

Average awards for personal-injuries claims made since the introduction of the Personal Injuries Guidelines are down by 42% compared with 2020, according to a report from the Personal Injuries Assessment Board (PIAB).

The PIAB figures cover claims that it settled from 24 April (when the guidelines came into effect) to the end of 2021. They are based on 4,731 cases.

They also show that the percentage of PIAB awards being accepted by parties has fallen significantly compared with 2020 – from 51% to 37% since the new guidelines came into effect.

Average awards

The average award in the period from 24 April to 31 December was €13,825, compared with €23,877 for the whole of 2020.

The percentage falls were the same in all three categories covered by the report – motor, personal liability, and employer’s liability.

The average motor award was €12,747. This category accounted for just under 70% of the cases examined in the report.

The figures for public liability and employer’s liability were €15,121 and €17,644, respectively.

Awards for general damages fell by almost 50% – from €21,850 in 2020 to €11,583.

Half under €10,000

The report says that neck and back injuries are, by far, the most common injury and make up just over half of injuries. 90% of these are minor injuries relating to soft tissue, with an average award of €9,423.

The PIAB report shows that almost half of all awards under the new guidelines were for under €10,000, compared with just 12% in 2020. Just 17% of awards were above €20,000, compared with 44% in 2020.

The body says that the percentage of “high-value” cases – those over €50,000 – has remained stable at 4%.

The Personal Injuries Guidelines set out the level of general damages that may be awarded in respect of varying types of personal injuries.

Both PIAB and the courts must have regard to the new guidelines in determining awards – and both need to give reasons for not using the guidelines to determine an award.

COVID impact

The data in the report relates only to PIAB awards, and the body says that it will take some time before we see rulings under the new guidelines in any volume from the courts.

For 2021, PIAB received 21,410 claim applications – down 18% compared with 2020.

The body says that claims have fallen significantly since the start of the COVID-19 pandemic, with an overall reduction of just over 30% in claims volumes since 2019. Motor claims have recorded the biggest drop of 34%.

Comparable data

On the fall in acceptance rates, the PIAB cites the “significant shift in award values” due to the new guidelines.

“This may impact acceptance rates in the short term, where the reduction in award levels may differ from what a party might have expected,” it says.

The body adds that the acceptance rate could be affected by a lack of comparable data from other channels, such as the courts.

“It is not yet evident that comparable awards through the courts and settlements with insurers will be the same,” the board says.

The Minister for Justice Helen McEntee said that the new guidelines had had “a clear and significant cost-saving impact since their introduction”.

She warned, however, that it was important that consumers felt the benefit of these savings through reduced insurance costs.

“My department will continue to assess the impact of the guidelines to ensure that they are having the desired effect,” the minister added.