Compensation Awards- A change on the horizon?

In April 2021, the Personal Injury Guidelines were published by the Judicial Council. The Guidelines replaced the Book of Quantum for all cases commenced after the 24^th April, 2021. The Guidelines had the effect of dramatically reducing the levels of compensation awarded to many claimants but it has been reported that this it to  change.

What are the Guidelines?

The Guidelines are set out in a voluminous document and Judges, when deciding on the level of damages (compensation) to award in personal injuries cases, must have regard to the Guidelines. If a Judge does not follow the Guidelines, (s)he must give a reason.

In the Guidelines, personal injuries are divided into detailed and specific categories of varying types of injuries. Then each injury is further divided into a range of severity (ranging from mild to severe) with each category having its own range of compensation that can be awarded.  The parties, at the end of a case, must identify the most severe (dominant) injury and the Court looks at the compensation for that category of injury.

If multiple injuries are suffered, the Judge also looks at the other (non- dominant) injuries but the Courts have taken the approach of applying a “discount” for these injuries as opposed to adding them altogether on the basis that all the injuries occurred at the same time and the award must be proportionate.

What has happened since 2021?

Overall, the Guidelines resulted in a reduction in the damages available in lower and moderate injuries and have led to disproportionately low awards for many Claimants. The Guidelines are a welcome step towards consistency in awards in Ireland but while they have had the desired effect for Insurance Companies to reduce their payments outs, the hope that lower insurance costs would follow, has not manifested.

So, what’s the good news?

The Guidelines are to be reviewed every three years and it has been reported that at a meeting of the Judicial Council on the 31^st January 2025, Judges indicated their strong support for draft amended Guidelines providing a 16.7% increase in personal injury awards. If approved, the revised guidelines will see the award of general damages for the most devastating and catastrophic of injuries rise from €550,000 to €642,000 . It is said that this increase is to reflect rising inflation since the Guidelines were first introduced.

While this proposed increase will not increase awards to their levels under the Book of Quantum, it certainly is welcome news for Claimants who are likely to see levels of compensation increased.

Sinéad Carroll.

If you are looking for a personal injury Solicitor,  please contact Cantillons Solicitors using the contact form below.  Our office is located at 39 South Mall, Cork. Contact us at Cantillons Solicitors at Cork  +353 (0)21 4275673 or Dublin +353 (0)1 264 1802 or email info@cantillons.com  if you would like more information.