Judges want Irish Government to add 17pc to Europe’s already highest insurance award pay-outs
Not only is this Government continuing to ignore small and medium businesses, but it is following a trend from the last couple of Irish Governments to drive businesses into the ground.
The latest anti-business move is in the hands of Justice Minister Jim O’Callaghan, who is reported to be bringing a memo to the Cabinet shortly, that will pave the way for draft legislation that unbelievably would lead directly to a rise in court insurance award levels.
The Minister and our Government is doing the bidding of the Judicial Council, which has proposed that personal injury award guidelines should be increased by almost 17 per cent.
Such an increase in the scale of personal injury awards will certainly be a winner for lawyers and claimants but a severe blow to everyone else in business or those in voluntary or sporting organisations in communities in every corner of the country.
The Alliance for Insurance Reform said the proposed rise in award levels would send insurance premiums up for businesses, but also the likes of sporting and community groups.
Car insurance premiums have risen for 21 months in a row
This proposal also comes at a time when car insurance premiums here have risen for 21 months in a row.
This is in sharp contrast to UK motorists whose car insurance premiums continue to stabilise, with new data showing a consistent drop in prices throughout 2025.
The latest analysis from comparison site Quotezone.co.uk found that the average cost of car insurance has dropped to £648 in June, down from £806 in the same month last year – a 20 per cent year-on-year decrease.
This clearly is more evidence of ‘Rip-Off Republic’ and our Government doing nothing to protect motorists from the insurance industry doing whatever they like with rising premiums, regardless of claims levels.
Three-quarters of small businesses, (but also sports, community and voluntary groups) have also seen their insurance premiums rise over the last two years, despite Government reforms, the Alliance for Insurance Reform as said.
Awards up to five-and-a-half times higher in Ireland than in the UK
What kind of limited perspective do the judges looking for this latest increase in awards have? For example, they are aware that the recommended payout for minor neck injuries, where recovery is made within six months, is already up to five-and-a-half times higher in the Republic of Ireland than in the UK.
It is surely time for them and the politicians to get in touch with reality.
The State’s Injuries Resolution Board (SIRB) process is very successful, but the legal fees are small or non-existent. If the judges and lawyers get their way with higher award levels, we will see the courts and bigger awards steal more cases from the efficient SIRB, dire consequence for businesses as well as community and sports organisations.
We already pay higher awards than any other European country
“It is astonishing that at a time when premiums are rising month on month, and we already pay higher awards than any other European country, the Government looks set to approve an increase of 17 per cent in personal injury awards,” said Vincent Jennings, chairman of the Alliance for Insurance Reform.
He added that such an increase is certain to raise insurance premiums and shows “a worrying lack of awareness or, worse still, indifference to the ongoing financial challenges motorists, small business owners, voluntary, community and sporting organisations face”.
Also, see this article on www.RTE.ie with regard to motor claims etc: www.rte.ie/news/ireland/2025/0703/1521583-motor-claims/