New injury claim rules to kick in
NEW guidelines on how much people should be awarded for injury claims will come into effect on Saturday week, Justice Minister Helen McEntee said yesterday .
The rules were drawn up recently following a legal review into insurance payouts, and are expected to slash the cost of motor premiums. The overhaul should also help end the ‘compo culture’ where some claimants claim bumper payouts for fake injuries in staged motor accidents.
Announcing the changes, Minister McEntee said: ‘This is a significant step in meeting our commitment to make insurance more affordable for consumers, businesses and community groups.
‘The commencement of the Personal Injuries Guidelines should reduce costs and, in time, boost competition in the Irish insurance market.’
But she also emphasised: ‘It is now important that the insurance industry follows through and brings down the cost of insurance.’
Some of the biggest drops in compensation award guidelines are for ‘soft-tissue’ injuries. The new award for a shoulder injury will start from €500 rather than the previous guide of up to €33,500.
The payout for a broken nose with full recovery was €18,000-€22,100 but has now been slashed to between €500 and €3,000.
Motor insurance experts believe the new legal guidelines will help bring down the costs of drivers’ premiums by as much as 15%.
It will mean annual savings of around €60 a year for many drivers. The current premium for a 40-year-old driver with a full no-claims bonus for a Volkswagen Golf is about €400 – so a 15% cut would reduce it to €340.
Minister McEntee added: ‘Our concern in Government is to urgently address the economic impacts of high insurance costs, while ensuring fair compensation.’