Personal injury claims up 25% in five years

Concern has been expressed over a 25 per cent increase in personal injury claims in the past five years.

The "emerging claims culture" could be addressed in the forthcoming Legal Services Bill, Patricia Byron, chief executive of the Injuries Board said.

A "steady but constant" increase in claims was a "real concern", she said.

Motor claims increased by over a third since 2007 and by a 6.7 per cent last year at a time when "roads have never been safer" and there were "fewer people at work" .

Ms Byron noted that the trend coincided with a "significant increase in promotion and advertising by claims handling intermediaries".

She pointed to a regulatory gap where solicitors were restricted from promoting their services but specialist claims companies could "do so with impunity".

Ms Byron said the Legal Services Bill could extend extending restrictions on advertising to claims handling firms and introduce strict sanctions and enforcement powers for non-compliance by intermediaries.

The claims culture promoted by such firms could “result in higher premiums” she said.

"We need to learn lessons from the UK market, where claims handling services are promoted heavily and whiplash claims have increased by 60 per cent since 2006," she said.

Road traffic injury claims made up three quarters of rewards with the rest being workplace (8 per cent) and public place accidents (17 per cent) . Overall claims increased by 4.7 per cent last year.

Total compensation awarded by the State Body last year increased by 3.9 per cent to €217.9m last year. The highest award last year was almost €700,000 while the average award was some €21,000.

The board has also raised concern that serious injuries from road traffic accidents were being "grossly understated". It has suggested enhanced data sharing to the HSE, the Garda and the Road Safety Authority.

The details were contained in the 2012 annual report of The Injuries Board which is the Government body which makes personal injury awards.