Judges told whiplash awards should be cutby80pc

JUDGES have been urged to cut payouts for whiplash by 80pc ahead of a meeting where they will consider new personal injury award guidelines. The Judicial Council will meet on February 5 to consider whether to adopt the guidelines, which have yet to be published.

The body representing the car rental industry in Ireland said such a reduction may seem large at first glance, but it was actually needed to bring Irish soft-tissue injury awards down to European levels.

The Car Rental Council of Ireland (CRCI) said insurance premium levels, fuelled by high awards, were making business unsustainable even before the pandemic hit.

“According to Car Rental Council figures, the cost of motor insurance per car is several multiples higher than that of the same cars we insure in other European countries, largely due to the massive impact claims have on premium costs in Ireland,” said spokesman George O’Connor.

“An 80pc reduction in minor injury awards is necessary to bring Irish award levels in line with other European countries.”

A 2018 report by the Personal Injuries Commission found the average amount paid out in Ireland for whiplash injuries was 4.4 times higher than in England and Wales. Average whiplash awards in Ireland are around €20,000.

The CRCI said unless there is action the gap is going to get even wider as reforms being introduced in the UK this May will reduce awards there significantly.

“This is probably a once-ina-lifetime opportunity for the judiciary to take this into their hands and solve this societal issue we have got,” said Mr O’Connor.

He said that if award levels are not cut by 80pc the Government should be prepared to intervene with legislation to bring soft-tissue injury awards in line with other European countries.

In a statement last month the judicial committee which has drafted the guidelines said it was “exceptionally cognisant” of the need to ensure the guidelines are “anchored in reality”.

It said it was aware many interest groups and individuals feel the cost of insurance is “prohibitive” and “having a significant effect on their ability to trade profitably and in some cases to trade at all”.