PIAB award values drop by 42% since the introduction of the Personal Injury Guidelines

On 11th April 2022, the Personal Injury Assessment Board (PIAB) published a report on the value of awards made since the commencement of the new Personal Injury Guidelines (PIG) on the 24th of April 2021 to 31st December 2021. The report gives a fascinating insight into the level of awards and types of claims being made. A total of 4,731 claims were assessed by PIAB between 24th of April 2021 and the 31st of December 2022 and the average assessment of General Damages for that period was €11,583.

BACKGROUND

The PIG were commenced on the 24th of April 2021 as an attempt to tackle rising insurance premiums by lowering awards being made to Claimants.

In 2020 the average assessment made by the PIAB was €23,887. The average award for damages since the commencement of the PIG is now €13,825, a reduction of 42%.

Since the commencement of the new guidelines, 49% of claims are assessed at a value of €10,000 or less, under the book of quantum this figure stood at 12%. Of even more significance is the level of awards valued at over €20,000. Previously 44% of claims were in excess of €20,000, that figure is now just 17%.

Neck and back injuries were the most common injury claimed for during this period, reported in 53% of claims. Interestingly, 91% of these back injuries were categorised as minor back injuries.

The acceptance rate of awards has also fallen under the new guidelines, potentially meaning more proceedings issuing than in previous years. The acceptance rate of assessments made by PIAB was 51% in 2020, while under the new guidelines that figure has dropped to 37%.

CONCLUSION

The new guidelines represent a significant change in the Personal Injury landscape. The figures published by the PIAB show the sweeping changes that are already underway.

Several challenges to the PIG are currently making their way through the Courts. The first challenge to be heard, a Judicial Review in relation to the constitutionality of the PIG concluded before Justice Meenan on the 6th of April and we await that Judgment. It is unclear what the consequences of that Judgment will be.

Another critical factor which remains unknown, is how the Courts will interpret the new guidelines. There is still uncertainty as to how these claims will be valued by the Judiciary themselves. The statistics provided by PIAB suggests that in 63% of claims, authorisations have issued and proceedings will likely follow. Until there is a critical mass of Judgments based on the new guidelines, the outlook remains unclear.

If you have any questions in relation to this article, please contact a member of our Litigation Team.