The Judicial Council is set to consider a proposal to increase the value of personal injury awards by 16.7%, aiming to address the impact of inflation on compensation amounts.
This marks the first update to the personal injuries guidelines since their introduction in 2021. If approved, the revised guidelines will see the maximum general damages for catastrophic injuries rise from €550,000 to €642,000.
Inflation-Driven Adjustments
The proposed increase is based on the cumulative change in the Harmonised Index of Consumer Prices (HICP) since the original guidelines were adopted. Economic consultants advised the Judicial Council’s personal injuries guidelines committee that HICP was the most appropriate metric, offering a slightly lower inflation rate than the Consumer Price Index (CPI), which the Central Statistics Office reports at around 18.5% over the same period.
Initially, the proposed increase stood at 15.6% when the committee submitted its recommendations in March 2024. However, by October, the Board of the Judicial Council adjusted this figure to reflect the updated HICP rate, settling at 16.7%.
Court Rulings and Legal Revisions
In addition to inflation adjustments, the updated guidelines incorporate changes reflecting judgments from the superior courts over the past three years. These updates aim to provide a more comprehensive framework for assessing personal injury claims.
Before coming into effect, the revised guidelines will require approval from both the full Judicial Council, which is scheduled to review the draft in January 2025, and the Oireachtas. This additional approval step follows the Supreme Court ruling in Delaney v. The Personal Injuries Board & Ors [2024] IESC 10, which mandates legislative oversight for such changes.
Legislative Framework
The process for revising and adopting these guidelines is outlined in the Courts, Civil Law, Criminal Law, and Superannuation (Miscellaneous Provisions) Act 2024, under Section 14. This ensures that any amendments are thoroughly vetted and aligned with judicial and legislative standards.
What This Means for Personal Injury Claimants
If approved, these changes will likely increase compensation amounts across various injury categories, providing claimants with awards more reflective of the current economic climate. Legal professionals and claimants alike should stay informed as the review process progresses in early 2025.
For those seeking guidance on personal injury claims, understanding the evolving guidelines is crucial. Our experienced team can provide clarity and support through every step of the claims process. Contact us today to learn more.