Personal injury awards down ‘huge’ 43% since 2019, data shows

The total value of compensation paid out in claims handled by the Personal Injuries Assessment Board (PIAB) fell by almost a quarter last year, as the impact of Covid-19 drove down the number of accidents, and was 43 per cent lower than in 2019.

The agency, created to resolve claims and act as an alternative to litigation, said in its annual report for last year that it dealt with 21,410 new claims and awarded €157 million in compensation to accident victims.

There were big drops in overall claims costs, with the number lodged falling 18 per cent to 21,410. This followed a reduction of 16 per cent in 2020. The decreased volume of claims, combined with the introduction of new personal injuries guidelines in April last year, resulted in a decrease in overall award values of €49 million compared with 2020 or a “huge” €118 million compared with 2019.

The reductions should have a direct impact on insurance costs, and were described as “encouraging” by Insurance Ireland, which also noted a 42 per cent fall in the average PIAB award following the introduction of the guidelines last year.

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The average PIAB award after the guidelines came into force was €13,825, compared with the average award in 2020 of €23,877. The report covers the four-month period prior to the introduction of the guidelines, as well as the following eight months.

Almost seven out of 10 awards were for motor claims, 18 per cent for public liability and 13 per cent for employer liability.

Motor claim applications were down 31 per cent, public liability claims were down by 27 per cent, while employer liability claims were down by 28 per cent. The number of claims involving fatal injuries also fell from 121 to 84.

Neck and back

Neck and back injuries were the most common injuries, making up 50 per cent of motor claim injuries, with 90 per cent of those classified as minor soft-tissue injuries.

“The introduction of the guidelines has been the single biggest change in the personal injuries area since PIAB was first established 18 years ago,” said the board’s chief executive, Rosalind Carroll. “While there are very immediate impacts in terms of award values, it will take time to see the full impact in terms of reducing the amount of personal injuries litigation.

“In the interim, the very significant shift in both volume and award values must not be ignored.”

PIAB chairman Dermot Divilly said there was a “huge opportunity” for the organisation to contribute more than the €50 million in legal and other costs avoided through engagement with it by stopping more cases from going to litigation.

“The benefits of our service matter for everyone who makes a claim, seeks cover or pays premiums. PIAB can offer an impartial, independent assessment of claims on the same basis as the courts but with significantly reduced costs and time.”