Personal injuries claims down €30m

THERE has been a €30m reduction in personal injury claims to insurance companies since 2008, according to new figures from the Injuries Board.

Latest figures from InjuriesBoard.ie show that €187m compensation was awarded in 2010 in respect of 8,381 personal injury claimants.

Injuries Board chief executive Patricia Byron said the significant cost savings as a result of the reduction in personal injury claims should translate to lower insurance premiums for consumers and businesses.

The 2010 figure is 13.8% less than the value of awards since 2008, despite claims volumes increasing to 26,964 (9%) over the same period.

The board said that could be attributed to a change in the composition of claims and, in particular, a 10% reduction in the value of higher value employer liability claims in 2010.

It said claims across motor and public liability, which are typically of lower value, increased by 6% and 8% in the same period.

“These increases have been more than offset by the decline in workplace claims, reducing the average 2010 award by 4% to €22,271,” it said. “These reductions, taken together with a recent initiative by the Injuries Board to reduce its fees to respondents by €200 (19%) and to claimants by €5 (10%), should have a positive impact on insurance premiums for consumers.”

Patricia Byron said it was the Injuries Board’s aim to fully compensate accident victims but to reduce processing costs.

“This should mean savings of up to €205 per claim for insurers in 2011. This is in addition to existing annual savings of up to €100m arising from the board’s non-adversarial model. We believe it is incumbent on insurers to pass on these benefits to hard pressed consumers and businesses rather than constantly flagging reasons why premiums should increase.”

The board said another factor facilitating lower insurance premiums was the reduction in the number of work place accidents.

Nearly three quarters of awards (74%) were for injuries from road accidents while the remainder were split between workplace (11%) and public place (15%).

Counties Longford and Limerick accounted for the largest number of awards as a proportion of population. County Kilkenny had the lowest number of awards per head of population.