Judges need guidelines for injury pay-outs, says insurance boss

There is an urgent need for statutory compensation guidelines for judges in insurance cases, according to the CEO of AA Ireland, Brendan Nevin.

In other countries there is a Book of Quantum for judges, which outlines how much money a person should receive for different types of injuries.

Speaking on Newstalk Breakfast, Mr Nevin said the book is available in Ireland but is not mandatory.

“The Minister for Justice needs to act. The Book of Quantum should be on a statutory footing. There is also a need for a discount rate to be set as soon as possible,” he said.

The discount Rate is the component factor affecting claims: “It is the assumed return on the award that the plaintiff will receive over their lifetime. This causes the settlement to go up,” said Mr Nevin.

Under the Book of Quantum, judges are given specific guidelines on how much money to pay out for injuries to different areas of the body - for example, a broken leg or a broken arm.

Mr Nevin said the Injuries Board handles only 20 per cent of insurance claims with 70 per cent being settled directly by insurance companies and ten per cent through the courts.