Controversial 16.7% Personal Injury Award Increase Cancelled
The proposed 16.7% increase in personal injury awards will not proceed as Justice Minister Jim O'Callaghan decides not to seek approval from the Cabinet Sub-Committee on Insurance Reform. This decision means the Judicial Council's suggested increase will not be implemented, preventing a significant rise in compensation levels for personal injury claims. Both insurers and consumer groups had warned of potential premium hikes if the increase went through.

A controversial proposed 16.7% increase in personal injury awards will not go ahead. Justice Minister Jim O'Callaghan will inform the Cabinet Sub-Committee on Insurance Reform that he will not seek approval for the increase. This means the increase proposed by the Judicial Council will not happen. The guidelines are used by courts and the Injuries Resolution Board to determine compensation levels for personal-injury claims. The increase could have led to higher insurance premiums. The National Competitiveness and Productivity Council advised the Government to reconsider the increase. Minister O'Callaghan will bring a Memorandum to Cabinet but is not expected to seek approval for the increase. Concerns exist about the impact on the Injuries Resolution Board if the guidelines are not increased. The IRB saved €76 million in avoided costs last year. The Alliance for Insurance Reform welcomed the decision, hoping for a revised process that benefits policyholders.
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