Minister O'Callaghan Withdraws Support for 17% Increase in Personal Injury Awards

Minister for Justice Jim O’Callaghan has decided not to seek Oireachtas approval for the Judicial Council's proposal to raise personal injury awards by nearly 17%. This move raises concerns about potential increased awards by judges outside the guidelines while the Personal Injuries Resolution Board (PIRB) remains bound by the current rules.

The Judicial Council, mandated to review the guidelines every three years, suggested a 16.7% increase in payouts in December. This proposal, if approved by the Oireachtas, would be the first adjustment since the guidelines were introduced in April 2021.

The planned hike faced opposition from insurers and business groups, fearing higher costs for consumers and companies. The Minister's decision was praised by various organizations concerned about the impact on businesses and insurance premiums.

Motorists have already experienced rate hikes due to rising car repair costs. The review committee applied recent Irish inflation rates to the existing guidelines, as it was challenging to analyze court awards under the guidelines.

The Supreme Court clarified the Oireachtas' role in setting injury guidelines, prompting calls for a review of the 2019 Judicial Council Act by Taoiseach Micheál Martin. Insurers and business groups have raised objections to the proposed increase in personal injury awards and the judiciary's powers through a Department of Finance consultation.

According to the source: The Irish Times.