The President of the High Court, Mr Justice Nicholas Kearns, has set up a working group to examine the options regarding compensation payment methods for for catastrophic injuries cases. The current system in Ireland relies on single lump sum payments that are an attempt to ensure that the victim is adequately compensated for the long term impact of any injuries. This mainly involves considering the situation if the victim had not been injured.
The main problem with this system is that the life expectancy of the victims needs to be estimated. Another problem is that a lump sum needs to be invested and it is very difficult to predict the long term performance of such investments. There is also a danger that some victims will not invest at all and simply spend their compensation amounts quickly.
The objective of the working group is examine of compensation payments for catastrophic injuries can or should be awarded by way of periodical payment orders.
The working group is chaired by Mr Justice Quirke and includes High Court judges, solicitors, barristers, and representatives from various organizations such as the State Claims Agency, Motor Insurance Bureau of Ireland, Department of Justice, Insurance Federation of Ireland, and the Courts Service.