A story in the Irish Independent today says that the value of compensation awards in Ireland saw an increase of 22 percent in the first six months of 2014 compared with 2013.
Conor Pope of the Irish Independent writes that €144 million was paid to claimants between January and July – the rise being attributable to a spike in claims being received during 2013, and those claims being resolved in the first half of this year.
Pope notes that that the overall number of compensation claims for injuries made in the first six months of 2014 is slightly down on 2013, and speculates that this is due to the economic recovery. He reported that the average value of compensation awards in Ireland is €22,000, with claims following motor accidents accounting for three-quarters of the total received.
A similar report in the Irish Times analysed where the increase in compensation awards in Ireland had materialised from; with Brian Byrne identifying a year-on-year increase in public liability claims of 30 percent, motor liability claims up 24 percent and employer liability claims up 10 percent.
Byrne also reported on concerns regarding an estimated 40 percent of personal injury claims which are settled directly between claimants and insurers. He wrote that insurance companies should make public compensation awards in Ireland that are settled “behind closed doors” in order that there is visibility on competitiveness, premiums and on false or exaggerated claims.
What neither newspaper article touches upon is the practise of “third party capture”, in which insurance companies try to lowball accident victims with inappropriate settlements of compensation before the victim has had the opportunity to speak with a solicitor. There is also a growing trend – particularly with claims against the HSE (also not mentioned in either newspaper article) – for solicitors to negotiate a settlement “on the steps of the High Court”.
One possible solution for increasing the visibility of compensation awards in Ireland would be to build a register based on the government´s new “Recovery of Certain Benefits and Assistance Scheme” which was launched in August. As insurance companies now have to obtain a certificate of benefits from the Department of Social Protection before settling injury compensation claims, it should not be too difficult for the DSP to compile data relating to the accurate value of compensation awards in Ireland.