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Donohoe responds on planned 17% PI awards hike

In the Dáil this week, Minister for Finance Paschal Donohoe addressed the proposed 17% increase in personal-injury awards, stating that such a rise had broader implications for businesses and consumers.

Ongoing discussions were taking place with the Department of Justice regarding the proposed amendments to the Personal Injuries Guidelines and their potential effect on the Government's broader insurance reforms, he said.

Minister of State Robert Troy had also begun engaging with stakeholders – including major insurers and Insurance Ireland – to ensure that any savings resulting from these reforms were passed on to consumers in the form of lower premiums, the minister said.

In a question (26 March) Mattie McGrath TD had expressed alarm over the potential impact such a rise in awards could have on businesses, particularly in terms of insurance premiums.

Remit

Minister Donohoe said that the Personal Injuries Guidelines were established independently by the Judicial Council, although the issue primarily fell under the remit of the Minister for Justice.

He pointed to data from the Central Bank of Ireland’s National Claims Information Database (NCID) showing that the guidelines had driven down the cost and time needed to resolve personal-injury claims.

The Injuries Resolution Board had proven to be a fast and cost-effective method of handling these claims, he stated.

An insurance reform agenda, as outlined in the Programme for Government, would boost competition in the market, increase transparency, and lower insurance costs across the board, he added.