Personal injury down 40%
The value of average bodily injury benefits awarded by the Personal Injury Assessment Board (PIAB) has declined by 40% from last year’s levels, following the introduction of new Judicial Board guidelines in April.
A new PIAB study shows that between April 27 and the end of September, the average stock market fell from â¬ 23,877 to â¬ 14,233.
The report also shows that nearly half of PIAB grants are now below â¬ 10,000, compared to 12% before the changes.
Based on more than 2,600 complaints during the period, PIAB indicates that the reduction level is equivalent to a total decrease in award values ââover the period of 25.6 million euros.
However, PIAB also found that the acceptance rate of its claims by claimants rose from 50% to 41% over the period, which it said was not unexpected.
âThis report shows that reward levels are dropping sharply, with guidelines having a very immediate impact on reward levels,â said Rosalind Carroll, CEO of PIAB.
âAs the cost of personal injury claims has been reported as a significant factor in the price and availability of insurance, this report is good news for individuals, communities and businesses who pay for insurance and, ultimately, for society. “
New guidelines set to lower personal injury benefits
The number of personal injury claims drops sharply – PIAB
The recalibration of personal injury compensation guidelines by the judiciary in March follows long-held claims by insurance reform activists that levels are out of step with international peers.
The insurance industry has claimed that this is a key driver of rising claims settlement costs, which has translated into higher prices for customers.
The changes passed by the courts have resulted in many rewards being downgraded, resulting in savings for insurance companies that they have promised to pass on to their customers.
Since the vast majority of personal injury claims never go to court, PIAB says it is primarily responsible for implementing the guidelines.
However, its data does not include settlements made directly with insurers or court awards.
The report details how 18% of rewards are now less than â¬ 5,000, with 30% between â¬ 5,000 and â¬ 10,000.
PIAB’s analysis revealed a 40% drop in the value of average auto and third party liability claims, with employer liability claims falling by 44%.
Average compensation for general damages, which includes compensation for pain and suffering, decreased by 46%.
The guidelines did not change special damages, which are costs such as medical or travel expenses or compensation for lost wages.
PIAB says it will take some time for the full impact of the guidelines, especially in terms of legal costs and litigation savings, to be felt.
It also indicates that the average values ââof the rewards going forward could be affected by the combination of severity and types of injuries.
“However, today’s report clearly shows that the guidelines, as they affect the monetary value of the rewards, have a very immediate effect on values ââand it is important to remember that the courts and the PIAB are mandated to follow the guidelines, which have been established by the Judicial Council, âMs. Carroll said.
“Reductions in award levels create the perfect environment for lower insurance premiums.”
âCombined with the sharp overall reduction in the number of injury claims over the past 18 months, this report shows that the overall claim costs are dropping very significantly. “
TÃ¡naiste welcomed the PIAB report, saying it shows the guidelines are having an effect.
“I expect this dramatic drop in reward levels to translate into reduced premiums for individuals, businesses and volunteer groups and the government will continue to work with the insurance industry to ensure that is. the case, âhe said.
The Alliance for Insurance Reform also welcomed the report, but said the trend and efforts to generate it will only be of value if they lead to substantial reductions in insurance premiums.
“As we see lower auto insurance premiums, the experience of SMEs, voluntary and community groups, sports and cultural organizations, and charities shows that renewals are in fact on the increase right now,” said Peter Boland, director of the Alliance.
âWhy don’t they go down? The insurance industry can’t have its cake and eat it. They identified the cost of claims as the main driver of insurance costs and this has been addressed by the government and judiciary power.”
âSo the risk associated with each policy has decreased significantly and that needs to be reflected in the premiums. “