Dáil Éireann Debate, Thursday - 18 April 2024
79. Deputy James Lawless asked the Minister for Enterprise, Trade and Employment his response to the Central Bank report that shows a large decrease in the cost of settling insurance claims through the Injuries Resolution Board; and if he will make a statement on the matter. [16910/24]
View answerThe reform and enhancement of the Injuries Resolution Board, with the overarching aim to have more claims settled through the Board, has been a priority for me since taking office.
We are now seeing the strengthening of the Board through the Personal Injuries Resolution Board Act 2022, bringing new functions for the agency and significantly the introduction of a mediation service for personal injuries claims. The Act was enacted in December 2022 and has been commenced over three phases in 2023.
The mediation service will support the early settlement of injury claims in our country through the mutual agreement of the parties involved and reduce the costs, time and stress for all involved. Mediation was introduced for employer liability claims last December and I intend to commence mediation for public liability injury claims in May and for motor liability injury claims in September this year.
I welcome the recent Central Bank’s third ‘National Claims Information Database - Employers’ Liability, Public Liability and Commercial Property Insurance Report’ published on the 4th of April. The report shows that in 2022 the average cost of injury claims that settled through the Injuries Resolution Board, under the Personal Injuries Guidelines, was 33% lower in comparison to the average cost of claims settled under the Book of Quantum in 2020.
This follows the Central Bank’s NCID report on Private Motor Insurance in December 2023 which noted a similar reduction in the cost of settling motor claims through the Board in 2022 under the Personal Injury Guidelines as against 2020 under the Book of Quantum. The Central Bank’s reporting shows the impact of the Personal Injuries Guidelines, introduced in April 2021, on the cost of claims is significant.
Each year the Central Bank’s NCID reports highlight the savings in costs and time when injury claims are settled through the Injuries Resolution Board, rather than through litigation. The agency’s work in 2022 directly generated €40 million in savings that would otherwise have been spent on progressing claims through the litigation system.
The recent Supreme Court judgement, in Bridget Delaney vs. the Personal Injuries Assessment Board, the Judicial Council, Ireland and the Attorney General, that the Guidelines are legally binding brings welcome clarity on the matter and provides for a consistent and predictable system for deciding personal injury compensation.
We are still at an early stage in seeing the full impact of the Guidelines given that cases where the award of the Injuries Resolution Board has not been accepted can take several years to come to Court. However, I fully expect that future Central Bank reports will demonstrate the positive impact of the Guidelines on costs on an even greater scale.
Responsibility lies with insurers to now reflect reductions in settling injury claims in insurance premiums.
