Motor Liability Awards Drop by Over 40% in Five Years

The value of compensation for motor liability claims issued through the Injuries Resolution Board has seen a significant decline of over 40% in recent years. A new study reveals that €105.8 million was awarded last year, a stark contrast to the €178.85 million distributed in 2019. This reduction follows the implementation of revised injury guidelines in April 2021.

The report, conducted by the Injuries Resolution Board (IRB) in collaboration with EY Economic Advisory, reviewed more than 76,000 claims related to road traffic incidents between 2019 and 2024. During this period, over 37,000 compensation assessments were completed, with 17,000 being accepted without resorting to litigation.

Total compensation awarded through these claims amounted to approximately €701 million. The study estimated that savings on legal fees for accepted motor liability claims during this timeframe exceeded €284 million.

According to IRB data, the average duration for settling a case through litigation is 5.1 years, with costs nearing €19,000, compared to 2.7 years and just over €2,000 when resolved through the IRB.

Impact of the New Guidelines

Introduced in 2021, the personal injury guidelines replaced the Book of Quantum as the standard for assessing personal injury cases. This change aimed to achieve more consistent outcomes in personal injury awards.

Dr Lauren Swan, head of research at the Injuries Resolutions Board, noted that there are specific reasons claimants opt for litigation. Typically, claims less than €5,000 or €10,000 are more likely to proceed to court, especially those significantly affected by the new guidelines.

Recent Trends in Claims

In 2024, the IRB received 12,042 claims, a slight increase from 11,587 in 2023, yet a notable 30% decrease from 2019. Excluding fatal cases, the average motor liability award last year was €17,333, marking a 9% rise compared to 2023. Additionally, the median award value in 2024 increased by 17% to €12,510.

Since 2022, the proportion of awards for minor injuries has decreased from 86% to 81%, while those for moderate to severe injuries have risen from 14% to 20%.