Increase in personal injury awards will have detrimental knock-on effect on businesses and jobs – Nelson Murray

A Judicial Council recommendation to increase personal injury awards by almost 17pc has to be carefully considered as everyone will be left to pick up any rising costs, a Fine Gael Senator has said.

Senator Linda Nelson Murray said the proposal which has been sent to the Justice Minister for his consideration will only make insurance premiums go one way – up.

The Fine Gael Senator said both consumers through premiums and businesses through insurance payouts will feel the pinch if they are adopted.

The recommendation before Minister Jim O’Callaghan is for a 16.7pc rise in awards. This would result in the lowest award of €500 going to €585 and the highest, for the most severe injuries, going from €550,000 to €642,000.

“I am calling on the Minister to seriously examine this suggested increase before any decision is made.  I am asking the Minister to meet with and listen to the policy holders, as these are the people who will ultimately pay the price,” Senator Nelson Murray.

“Right now, businesses are faced with a myriad of increased costs and we simply cannot add more fuel to the fire by doing something that will drive premiums up.

“I fully support anyone who has suffered a severe injury being fully compensated and taken care of, but we need to examine the lower end of the market – the smaller claims.

“As it stands, there are still so many groups and businesses that still either cannot get insurance or cannot get insurance at a fair price. I have first-hand experience of the stress of trying to source insurance like so many other businesses have,” she said.

Senator Nelson Murray runs a family business, Huckleberry’s Den in Navan, Co Meath. Five years ago, she was two weeks from closing when she couldn’t get insurance for the play and activity centre.

“Over the past few years, we have witnessed an excellent programme of insurance reform delivered by Fine Gael and before we can even reap the beneficial results of this, there is a proposal on a Minister’s desk to raise the injury awards which I have no doubt will further increase premiums which could result in the loss of jobs and businesses closing.

“This isn’t an idle threat. It’s a real example as we saw so many businesses close particularly in the leisure sector only a few years ago.

“These increases could also reduce the volume of cases settled at the Injuries Resolution Board, which will in turn lead to substantial increases in litigation expenses.

“The previous government did so much on the programme for insurance reform and it would be wrong to see all that work unfold which will happen if these suggested awards go ahead,” Senator Nelson Murray said.

The Programme for Government states: ‘The Government also commits to further action to drive down insurance costs impacting households, motorists and businesses’.

“So, with that being said, 2025 is not the year to put more pressure on businesses and more pressure on policy holders.

“Instead, we need to keep on track with Insurance Reform and tackle reforms such as Legal Fees and greater competition in the market,” she said.