New law aimed at reducing number and costs of personal injuries claims comes into operation

A new law aimed at reducing the number and costs of personal injuries claims comes into operation on Monday. Minister of State Dara Calleary, announcing the commencement order, said the impact of insurance reform “is beginning to be seen in motor insurance prices”, and he urged that the benefits should also be realised in employer and public liability business lines.

He said the new law will encourage more claimants and respondents to avail of an enhanced personal injuries resolution service, reducing the need to go to court and reducing the cost of personal injury claims.

Under the new measures claimants who proceed with a court action after rejecting an assessment by the Personal Injuries Assessment Board (PIAB) of the value of their claim will not recover their legal costs and may face paying the other side’s costs if the court ultimately awards them a lower amount than the PIAB assessment.

The enactment and commencement of the relevant provisions of the Personal Injuries Resolution Board Act 2022 was described by Mr Calleary, Minister of State for Trade Promotion and Digital Transformation at the Department of Enterprise, Trade and Employment, as “a priority for me since my appointment as Minister”.

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The legislation “will strengthen and enhance the PIAB framework”, he said.

The provisions mean where a personal injuries claim goes to litigation after being refused by a claimant, a PIAB assessment that has been accepted by a respondent will have the status of an offer of tender payment. If the court award is not greater than the value of the PIAB assessment, the claimant will not recover their costs and will generally be liable for the respondent’s costs as well.

PIAB will have more time to assess claims where an injury has yet to settle, and will also assess claims of a wholly psychological nature. It will be an offence to supply false information to PIAB, and the legislation empowers PIAB to disclose information to an Garda Síochána.

Further provisions due to be commenced in the coming months will allow an enhanced resolution board to offer mediation as a means of resolving a claim.

All personal injury claims, with certain exceptions such as medical negligence cases, must be submitted to PIAB unless they are settled by the parties involved at an early stage.