ISME hits out at move to raise personal injury awards by 17% 

SME association says it will lead to hikes in insurance premiums for businesses and consumers and further reward the legal industry

ISME stated: 'Ireland also has 14 times more personal injury cases than England and Wales, with a population 12 times smaller.' 

The Government’s proposal to raise personal injury awards by 17% has been strongly criticised by industry bodies, which have warned that such a move could take money directly from small businesses into the pockets of lawyers.

Speaking on the proposal, the Irish Small and Medium Enterprise Association (ISME) said the increase would lead to hikes in insurance premiums for both businesses and consumers, further rewarding a legal industry which it said is already profiting from huge personal injury payouts. 

The proposal, due to be brought to Cabinet by minister for justice Jim O’Callaghan on July 8, is based on a recommendation from the Judicial Council.

“This is despite Ireland already having much higher personal injury payouts than other comparable countries,” ISME said. “Ireland also has 14 times more personal injury cases than England and Wales, with a population 12 times smaller.”

ISME added that Mr O’Callaghan’s support for the increase is a “capitulation to vested legal interests” and undermines years of work to bring down insurance costs for SMEs and consumers.

ISME chief executive Neil McDonnell said: “This proposed increase is indefensible.”   

“It rewards a highly profitable legal industry and punishes honest employers, retailers, and community organisations. 

"Insurance costs have not fallen following previous reforms, and now the Government wants to undo the little progress that has been made. SMEs and voluntary groups will bear the cost while legal firms walk away with bigger fees.

“Minister O’Callaghan will have to make a decision based on social good, not on the desire to maintain legal earning power.

“Not only is there no justification for an increase in personal injury awards but the final report of the Personal Injuries Commission suggests that awards should be reduced by at least a further 30%.”

 The association is calling on TDs and party leaders to oppose Mr O’Callaghan accepting of the Judicial Council’s recommendation, as well as pushing for the Legal Services Regulatory Authority to investigate solicitors who repeatedly pursue “abusive or vexatious claims.”