27 Jul PIAB Publishes 2020 Report
PIAB reports sharp reduction in Personal Injuries Claims
The Personal Injuries Assessment Board (PIAB) has published its Annual Report 2020. According to the report, since the new Personal Injuries Guidelines was implemented in April 2021, preliminary analysis shows average award values through PIAB have halved.
The reductions in claims numbers in 2020 were substantially due to lower levels of accidents resulting from far fewer people on Ireland’s roads, attending workplaces or meeting together in public areas including hospitality, childcare, leisure or similar environments, due to COVID restrictions.
Some of the highlights from the report include:
Personal Injuries Claims:
- PIAB dealt with 26,009 new personal injuries claims and awarded total compensation of €206 million in 2020.
- The number of personal injuries claims in 2020 fell by 16%, mainly due to the pandemic.
- The number of claims has reduced by 22% over the past two years.
- Awards acceptance rates have fallen 58% to 51% since 2015 despite similar average awards.
PIAB highlights and developments:
- PIAB Total Awards were down €70m on 2019 and have fallen €92m over two years due to lower claims volumes.
- According to PIAB, these reductions in claims volumes should impact insurance costs significantly.
Rosaline Carroll, Chief Executive, PIAB, said: “Claims costs are reducing significantly due to lower volumes and lower values and this new environment is ripe for premium reductions. Our claims data shows claims numbers are down sharply, while we also know Awards are already 50% lower in recent months, as new award guidelines take effect. All parties involved need to fully support the new guidelines, so that acceptance of PIAB awards and consenting to fully use the PIAB process increase.”
Employers Liability (EL): EL claims for workplace injuries are the smallest of the three liability categories. PIAB received 5,049 Employers Liability claims in 2020 and issued 1,103 awards in that category. The average award in this category was €30,558. Injuries in the workplace, can often involve more severe and life-changing injuries resulting in higher average awards.
Public Liability (PL): The number of Public Liability claims received by PIAB in 2020 was 6,823 and the number of awards made in that category was 1,426. The average award in this category was €26,065.
Motor Liability (ML): ML claims continue to be the largest category of claims in Ireland. PIAB received 14,137 motor claims in 2020, issued 6,058 awards in relation to those claims with an average award of €22,357 in this category.
Dermot Divilly, Chairperson of PIAB commented: “There has never been a period in which the major benefits and cost savings which the PIAB system brings have been needed more. As Ireland moves into a period of economic recovery, there is now, more than ever, a need for everyone to help us to fully crystalise the benefits of our service and to ensure it is not hampered or weakened.”
Robert Troy, Minister of State at the Department of Enterprise, Trade and Employment with responsibility for PIAB added: “Addressing the cost and availability of insurance is a priority for me and for the Government. The actions completed to date under the Action Plan for Insurance Reform are already having an effect with an average 50% reduction in awards arising from the Personal Injuries Guidelines.”
Read the PIAB Press Release and access the Report here…