Irish Examiner view: One-size-fits-all doesn't work for personal injury awards

Insurance reform campaigners are seeking an 80% cut in the level of personal injury awards being granted by the courts for minor injuries. Picture: iStock

The Judicial Council is to meet again later this month to consider draft proposals to limit awards in personal injury claims. 

Insurance reform campaigners within the industry are seeking an 80% cut in the level of personal injury awards being granted by the courts for minor injuries. They say this will help significantly to reduce the cost of buying insurance, most notably public and employers' liability cover.

Up to now, the major thrust for insurance reform has been very much one-sided, with the insurance industry pushing to reduce awards and enjoying unprecedented influence over the Government to secure major legislative changes in its favour, both in civil and criminal law.

It is, of course, right that awards for personal injuries should not amount to a windfall for the individual claimant. 

It is also right, however, that people who are injured through no fault of their own should be adequately compensated. A blanket 80% reduction in awards is a one-size-fits-all approach and is likely to operate as a very blunt instrument in cases that are very often complex and nuanced.

It is also right that measures be taken — as they have — to guard against fraudulent claims but dishonesty on the part of insurers should also be addressed. If the first response to a claim by an insurer is ‘how can we avoid paying out on this policy?’ it is hardly a surprise that some claimants will also want to milk the system. Fairness works both ways.