Decision Not to Introduce 17% Increase in Personal Injury Awards, Welcomed

The Alliance for Insurance Reform, of which The Wheel is a member, has warmly welcomed the decision not to introduce the proposed 17% increase in personal injury awards.

Last year the Judicial Council performed an independent assessment of the Personal Injury Guidelines and made recommendations to the Minister for Justice in accordance with the relevant legislation in January 2025. However, the decision as to whether these recommendations are accepted is a matter for the legislature, which must be cognisant of a myriad of other policy considerations; including rising premiums, existing award levels that are significantly higher than in other jurisdictions and the potentially adverse impact upward reviews every three years will have on the effective functioning of the Injuries Resolution Board.

We hope a satisfactory revised process will be introduced to ensure the system of administering personal injury awards can deliver fair settlements to claimants and affordable insurance for policyholders.

The government has made this decision not for the benefit of insurance companies but for policyholders. In terms of liability insurance for businesses, sports, community and voluntary groups we have seen substantial decreases in the volume of claims and the size of awards. It is unconscionable that insurers have chosen not to pass on savings to customers, choosing instead to prioritise profits over their policyholders. All appropriate pressure must be brought to bear on them by our elected representatives and we look forward to seeing how the next action plan for insurance reform will address this key issue.

This was a grassroots campaign by local business, sports, community and voluntary organisations who were deeply concerned at the proposed increase in the context of ongoing insurance costs challenges and wrote in their hundreds to government ministers expressing their concerns. It is important, and very welcome, that these concerns were listened to.

The Wheel would like to thank its members who supported this campaign.