Impacts of Stagnant Personal Injury Awards in Ireland

As the legal landscape in Ireland continues to evolve, the latest report from the Injuries Resolution Board (IRB), released on 9 July 2025, provides valuable insights into the current state of personal injury claims. Notably, the report outlines a 3% rise in claims submitted to the Injuries Board in 2024, bringing the total to 20,837 compared to the previous year. This increment, although seemingly modest, signifies a shift in the “changed environment” for personal injury claimants. Historically, claims hovered around 30,000 per annum before the pandemic, indicating a significant 33.3% reduction overall. This decline must be examined against the backdrop of the higher compensation awards granted prior to the implementation of the Judicial Guidelines on 6 March 2021, along with legislative changes such as the Occupiers Act and previously existing disparities between the Judiciary and the Injuries Board.

The advent of the pandemic has undeniably skewed data, complicating year-on-year comparisons. Nevertheless, when juxtaposed against 2019 figures, the current environment presents a clearer picture of the transformed claims landscape. The 3% rise from 2023 to 2024 suggests a return to stability. However, the overall decrease in claims by approximately 30% highlights the impact of the lower guidelines, which have particularly affected smaller personal injury claims. Potential claimants with minor injuries may now perceive less incentive to pursue claims due to reduced award values.

A significant legal stipulation requires the Judicial Council to periodically review these guidelines. Their recent proposal recommended a 16.7% increase in awards to address inflationary pressures and adjust damage valuations appropriately. However, the Minister for Justice has decided not to forward this proposal to the Oireachtas for approval, a decision influenced by a Supreme Court ruling in April 2025, which mandates parliamentary consent for such changes. While this decision aligns with the interests of the insurance industry, which had lobbied extensively against increased awards, it introduces the possibility of judicial independence leading to higher awards. Such outcomes could potentially emerge in future Court of Appeal decisions, which will undoubtedly be monitored closely.

In addition to these developments, the Minister for Justice is set to initiate a review of the 2019 Judicial Council Act to re-evaluate how guidelines are established. The results of this review are eagerly anticipated, as they could significantly influence the future framework for personal injury claims.

Overall, the drop in claims numbers by around 30% in 2024 compared to 2020 and the decision to maintain current award levels suggest a newfound consistency in personal injury awards and claimant numbers. This stability presents an appealing prospect for international insurers or indemnifiers contemplating entry into the Irish insurance market, which remains costly for policyholders across various sectors. The continued monitoring of these trends will be crucial for understanding the future trajectory of the personal injury landscape in Ireland.