There has been a sharp fall in the number and the value of claims paid out by the State’s Personal Injuries Assessment Board.
But despite the 16-year low in the value of claims paid out last year motor insurance premiums rose in the last year, according to separate Central Statistics Office figures.
CSO inflation figures for October show that motor premiums rose by 0.8pc when compared with a year ago. This is a reverse of the situation over the last few years when motor premiums were falling.
The Personal Injuries Assessment Board (PIAB) said that the numbers of personal injury claims are now far lower than before Covid.
And the average value of an injury compensation award has dropped by 35pc compared with 2020
The PIAB is a state body that adjudicates claims without involving courts.
It issued two reports showing that the cost of compensation claims in Ireland has fallen sharply since 2019, with far fewer claims being received and a reduction in the value of average awards.
It said that this should contribute to a better claims environment, and positive impacts on premiums.
Insurers have long blamed the volume and cost of smaller claims for keeping their costs high, and impacting on premium levels.
Last year was a significant reporting year for PIAB as it was the first full year of operating under the Personal Injuries Guidelines.
The guidelines, agreed by the judges, slashed awards in cases of claims of less than €100,000 by up to 40pc.
All damages claims have to initially go through the board and can only go to court if a settlement is rejected by either side.
There were 18,453 claim applications made to PIAB in 2022, a 14pc decrease on the previous year
The number of claims in 2022 was a 41pc decrease on claim volumes compared to pre-pandemic levels in 2019.
The total value of awards has reduced by €134m since 2019, driven by both changes to the volume of claims and changes to average award values resultant from the new guidelines
PIAB said this should have a significant impact on the overall cost of claims in Ireland, and insurance costs.
Some €141m in claims was awarded by PIAB in 2022, the lowest figure in the last 16 years.
The number of fatal claims increased to 96 from 84 and over half of those in the motor area were vulnerable road users.
Overall average award values were 35pc lower in 2022, when compared to the average award in 2020, assessed under the previous Book of Quantum.
The average value of awards of compensation made by PIAB in 2022 was €15,544.
General damages, which cover awards for pain and suffering to an injured party were 41% lower on average in value than the 2020 average.
However, there was an increase in the average value of special damages, which covers financial loss or vouched expenditure by a claimant. But those payments represent a relatively small proportion of the average overall awards. Special damages, which are not affected by the Personal Injuries Guidelines, increased in average value, from €2,027 in 2020 to €2,740 in 2022, an increase of 35pc.
The overall average award in 2022 increased by 12pc on the average award made under the Guidelines in the period April to December 2021 due to the impact of special damages.
This was related to overall inflation, as well as the greater proportion of high-value cases assessed by PIAB in 2022, the board said.
Nearly half of awards made in 2022 were for under €10,000 compared with one in eight in 2020.
The acceptance rate for PIAB Awards by November 2022 had reached 48pc meaning nearly half of all claims assessed were not entering litigation and the impact of the Guidelines would be immediate.
PIAB chief executive Rosalind Carroll said: “2022 saw continued reductions in the volume of personal injury claims being made to PIAB. While at the same time we saw the continued impact of the Personal Injuries Guidelines with a reduction in average award levels.”
She said the combined impact is that the overall cost of claims has dropped significantly which should have a very positive impact on insurance premiums.
