Recession is not yet affecting claims

There is no evidence of an increase in personal injury claims due to the recession, according to the chief executive of the Injuries Board.
While some insurers have commented recently on a surge of personal injury claims due to the economic downturn, Patricia Byron said it was simply too early to draw the same conclusion.

“The pace of increase in claims has reduced from 10 per cent in 2006/ 2007 to 6 per cent in 2007/ 2008 – a trend that is more indicative of a levelling off than a spike in volumes. To date in 2009, we have no evidence of an increase in claims volumes,” Byron added.
Her comments came as it was revealed that compensation of €217 million was awarded in respect of 8,845 personal injury claimants last year.
According to preliminary year-end data from InjuriesBoard.ie — the independent body, formerly known as the Personal Injuries Assessment Board — the amount of money awarded on claims above €38,000 rose from a quarter of all awards in 2007 to a third last year. This rise was largely driven by an increase in the number of high value awards typically associated with complex or serious personal injuries.
“Evidence available to the Board suggests that as confidence in our non-adversarial model grows, a greater number of the more serious or complex injuries are assessed by us,” commented Byron.
The number of claims in the sub-€38,000 range, which are typically soft tissue and minor bone injuries, rose by a modest 4 per cent.
In contrast, the number of awards associated with more serious cases (over €38,000) rose by 47 per cent, with the number of awards over €100,000 rising by 87 per cent.
Byron said that Injuries Board.ie continues to fulfill its mission to deliver personal injuries claims fairly, promptly and transparently.
“We have now made over 23,500 awards since we opened our doors in 2004, amounting to almost €530 million in compensation”, she said.
“By delivering these awards four times faster and with a low administration charge, the InjuriesBoard.ie model has delivered direct and indirect savings of between €200 million and €250 million to the economy,” she stated.