Additional reporting by Vivienne Clarke.
New guidelines for personal injuries have led to a substantial decline in the average sum awarded in damages, according to the preliminary findings of a report from the Personal Injuries Assessment Board (PIAB).
According to The Irish Times, awards for personal injury cases fell by 50 per cent in the two months since the new guidelines, which set out new levels of damages that can be awarded in personal injury claims, were introduced.
The findings are understood to show that 78 per cent of award totals were €15,000 or less, compared to 30 per cent of awards in 2020.
The guidelines were seen as long overdue and aimed to tackle high personal injury awards which insurance companies said were driving up premiums.
Tánaiste Leo Varadkar is expected to bring the report on the Government's Action Plan for Insurance Reform to the Cabinet today, showing approximately half of the 66 actions in the plan have been implemented in its first six months.
'Existential issue'
Following the reports of decreased awards, the director of the Alliance for Insurance Reform, Peter Boland has called on insurance companies to immediately reduce premiums.
Speaking on RTÉ radio’s Morning Ireland, Mr Boland said insurance costs in Ireland had been an “existential issue” for the past five years and despite the 50 per cent drop in awards in the last two months, there had been no reduction in premiums.
Mr Boland warned that Irish society will not recover at pace unless “this is sorted out”, calling on the Government to "get a move on this issue", adding there were still 35 sectors who still could not get insurance cover.
The sectors involved could not wait for the remainder of the requirements on the action plan to come through, he said, adding the impact of the new guidelines should have happened back in March.
Ireland was completely out of line with the rest of Europe when it came to insurance, Mr Boland said, and it was “farcical” to still be talking about insurance as “an existential issue” while it was just another utility bill elsewhere.
Insurance providers needed to follow up on implementing the guidelines, he urged.
