Personal injury award values drop by €118m in past two years

New guidelines introduced a range of compensation payments for neck injuries, from the most minor (€500) to the most severe (€150,000).

The amount paid out in personal injuries awards in the past two years has fallen by €118m.

The annual report of the Personal Injuries Assessment Board says the fall in payouts has been partly driven by a decrease in the volume of claims received, and a reduction in accidents during the Covid-19 pandemic.

However, changes to overall damages that should be awarded, outlined in the new Personal Injuries Guidelines, are also being highlighted as one of the reasons why the amount has fallen.

The PIAB handled 21,410 new personal injury claims and awarded total compensation to accident victims of over €157m in 2021.

According to the agency, the number of claims received is a reduction of 18% compared with last year. This follows a reduction in 2020 of 16% and an overall drop in claims volumes in the last two years of 31%, the report noted.

The report is the first since new guidelines on personal injuries were introduced in April 2021 to bring more consistency in awards across the country. 

For example, the new guidelines introduced a range of compensation payments for neck injuries, from the most minor (€500) to the most severe (€150,000). The guidelines replaced the Book of Quantum.

In cases where PIAB and the courts do not stick to the guidelines, they must give reasons for not doing so.

PIAB said there was some volatility and uncertainty initially following the introduction of the guidelines. But the agency believes that two failed legal challenges to the guidelines will result in “a gradual increase in acceptance rates and more stability in trends”.

The agency said the average PIAB award after the guidelines came into effect in April 2021 was €13,825 — down from €23,877 in 2020.

According to the report:

• 69% of awards were for motor claims; 
• 18% were in respect of public liability; 
• 13% related to employer liability; 
• The decrease in volumes and values of claims is reflective of all categories of claims, with motor claim applications down by 31%, public liability down by 27%, and employer liability down by 28%;
• The number of claims involving fatal injuries has also reduced from 121 to 84; 
• Neck and back injuries are the most common injuries and make up 50% of motor claim injuries with 90% of these being classified as minor soft tissue injuries.

 PIAB chief executive Rosalind Carroll said: “The introduction of the guidelines has been the single biggest change in the personal injuries area since PIAB was first established 18 years ago. 

"While there are very immediate impacts in terms of award values, it will take time to see the full impact in terms of reducing the amount of personal injuries litigation.” 

Minister of State at the Department of Enterprise, Trade and Employment, Robert Troy, who has responsibility for PIAB, said: “Increasing the number of personal injury claims that may be resolved through the PIAB process and without recourse to litigation is a priority for me as minister responsible for PIAB. 

"I will shortly publish the Personal Injuries Resolution Board Bill 2022 which will reform and strengthen the board and enable it resolve more personal injury claims. This is an important piece of legislation, and I am determined to enact it in 2022.”