Personal injury awards against the State rose by 21% last year

Claim costs of the SCA in 2019 amounted to €431.4m up 21.7% on the €354.6m in 2018. In addition, the NTMA incurred €28.5m in administrative costs in the performance of its SCA functions. 

Compensation awards and costs for personal injury and negligence claims against the State increased by more than 21.7% last year to more than €431m.

According to the report from the Comptroller and Auditor General (C&AG), the number of claims against the State has also increased, rising significantly since 2012.

The National Treasury Management Agency (NTMA) manages personal injury, property damage and clinical negligence compensation claims on behalf of the State. When performing these functions, the NTMA is known as the State Claims Agency (SCA).

Claim costs of the SCA in 2019 amounted to €431.4m up 21.7% on the €354.6m in 2018. In addition, the NTMA incurred €28.5m in administrative costs in the performance of its SCA functions. 

The costs are recoupable from the relevant State authorities availing of the SCA services.

At the end of 2019, the SCA was managing 11,580 claims having resolved 2,704 claims last year.

The report states that the estimated cost of settling outstanding claims has been steadily increasing. The estimated outstanding liability at the end of 2019 has been estimated by the SCA at €3.63bn, more than three times the outstanding liability at the end of 2012. 

Health sector bodies including the HSE, Tusla and the Department of Health accounted for 92% of the estimated outstanding liability at the end of 2019. Two other sectors Justice and Defence, and Education accounted for a further 7%.

Last year, the SCA’s remit was broadened to include the management of claims against foster parents and former foster carers.

The Government has also provided a State indemnity to private healthcare facilities and clinicians who were contracted to provide medical services to the public health system in the management of Covid-19 cases. 

The government also provided an indemnity to a private sector technology company that is assisting with the Covid-19 testing programme. Management of claims arising from these indemnities has also been delegated to the SCA.

Of the €3.63bn outstanding estimated liability, €452.3m relates to interim payment orders and ‘periodic payment orders’ (PPO).

In November 2019, the high court determined that PPOs in their current form are unfair towards plaintiffs if linked to the harmonised index of consumer prices (HICP). 

The court stated that there is potential within the legislation for agreement on PPOs to be linked to an index other than the HICP. As a result of this ruling, the SCA now expects most claims to be settled on a lump-sum or interim payment order basis, unless there is a change to the index.