MEN'S HEALTH I
Concern over rise in personal injury claims
March 26, 2013
-
Concern has been expressed about the ‘steady but consistent increase' in personal injury claims in recent years.
According to the Injuries Board, personal injury claims have increased by 24% since 2007, with motor claims alone rising by almost 34% in the same period.
The Injuries Board is responsible for assessing personal injury claims and making awards in relation to motor, employer and public liability accidents, without the need for litigation.
It has just published its 2012 Annual Report, which shows that the total compensation awarded by the State last year increased by almost 4% to over €217 million.
The average award amounted to €21,502, while the highest award was €697,495.
Three in four awards last year related to road traffic accidents, while the remainder related to injuries in the workplace and in public places.
According to Injuries Board CEO, Patricia Byron, the increase in claims over the last five years ‘is a real concern at a time when our roads have never been safer and we have fewer people at work'.
She noted that this increase coincides with a big rise in advertising by claims handling intermediaries.
"Last year, the Injuries Board raised concerns that specialist claims-farming firms were promoting a claims culture that could result in higher insurance premiums for consumers and business and a decline in competitiveness.
"We need to learn lessons from the UK market, where claims handling services are promoted heavily and whiplash claims have increased by 60% since 2006," she insisted.
She said that a ‘regulatory gap' has now emerged, whereby solicitors are restricted from promoting their services here, yet claims handling firms ‘can do so with impunity'.
"The upcoming Legal Services Bill presents an opportunity to address an emerging claims culture by extending restrictions on advertising to claims handling firms and by introducing strict powers of enforcement and sanctions for non-compliance by all intermediaries" Ms Byron explained.
Meanwhile, the board pointed out that the average time to process a claim in 2012 was just over seven months compared with three years through litigation.
For more information on the Injuries Board, click here