Irish Examiner View: High time for cap on personal injury payouts

Almost three quarters (74%) of respondents also indicated CGT rates should be reduced in the upcoming budget. Picture: Pexels

The report from the Law Reform Commission on capping damages in personal injury claims is a welcome and timely addition to the wider debate about the cost of insurance.

The Commission has concluded that introducing a cap on damages awarded in personal injury claims would be permissible under Irish Constitutional law.

The review of damages was prompted by rising insurance premiums for businesses and motorists, which the industry claims is a result of excessive payouts being awarded in personal injury cases.

This, in turn, has led to excessive insurance premiums which hit small businesses, voluntary groups, charities, and sports clubs, as well as arts and cultural organisations.

According to director of Alliance for Insurance Reform Ireland, Peter Boland, the biggest element of every insurance premium is damages paid in personal injury claims. 

The fact remains that personal injury claims here are more than four times higher than those in the UK, and many multiples higher than in the rest of Europe.