The news that insurance payouts have reduced by 40% in the last five months has been welcomed by the Regional Group of TD’s, who campaigned strongly for the introduction of new guidelines to reduce payouts. The Personal Injuries Assessment Board (PIAB) reported that the average injuries payout reduced from just under €24,000 to just over €14,000.

As a result of the Criminal Justice (Perjury and Related Offences) Act 2021 which was brought forward by the Regional Group, Insurance scammers now face up to 10 years in jail and a €100,000 fine after a new law enacted in July 2021 to crack down on ‘compo culture’.

In March of this year ,The Regional Group introduced its Private Members Bill – the Civil Liability and Courts (Amendment) Bill 2021 – to the Dail. The Minister for Justice, Helen McEntee gave an undertaken to address the issues and introduce a bill of her own to which the group agreed. However, the group will re-introduce its PMB if the Minister does not fulfil her commitment.

Regional Group member and Independent TD for Wexford Verona Murphy commented,

“It is very encouraging that the personal injuries guidelines appear to be resulting in a reduction in payouts. Reform in the area was badly needed and something that the Regional Independent Group strongly supported.”

Many hope that a reduction in payouts for personal injuries will also result in lower legal costs and most importantly, lower insurance premiums across the board.

Deputy Murphy went on to highlight the difficulties faced by different sectors:

“The consequences of high insurance premiums can be seen all over the country. Childcare providers have been warning about this for years. Providers were leaving the market, premiums were skyrocketing and subsequently childcare providers were closing or having to raise their fees so high that many parents were unable to afford their services. Similarly, when it comes to outdoor activity centres, many are also finding it difficult to get insurance cover. We also regularly hear of cases where young drivers are being priced off the road, just at a time when they need their own transport to get to and from college or when they are looking to start work. In other words, soaring insurance premiums had a negative affect right across different aspects of society.”

“We are now in a position where we can see significant progress in the area, but the progress on reductions in claims will only have the desired effect if we see a significant reduction in insurance premiums. My colleagues and I in the Regional Independent Group will continue to be at the forefront of insurance reform”