Referendum May Be Held If Judges Fail To Reduce Whiplash Payouts

The government has warned that a referendum may be held if judges do not reduce whiplash payouts as the average whiplash payout reaches €20,000 which is five times the average payout in England and Wales

The referendum could be used by the government to override the judges' discretion in the awarding of compensation claims if they do not drastically reduce whiplash and soft injuries damages in less than two years.

It was only revealed a few days ago how the average payout for whiplash claim in this country is €20,000. In response to this, the Junior Minister for financial services and insurance, Michael D'Arcy, said unless judges recalibrate compensation claims for whiplash injuries downwards, the Government will intervene.

"If the judges don't, then the matter will have to be reviewed by the Oireachtas,"

Mr D'Arcy has admitted though, that there may be a question regarding the constitutionality of the Oireachtas overriding the judicial discretion by judges when they fix awards in certain civil law matters. He went on to add, that he valued judicial discretion but added that "some judges are more generous than others".

"If a referendum is required, we will go with a referendum so that the Oireachtas does have the legal authority to set awards,"

The latest figures of €20,000 on average per payout for whiplash cases came from the Personal Injuries Assessment Board (PIAB).

These figures are very similar to that contained in the final report of the Personal Injuries Commission (PIC), chaired by former High Court president Mr Justice Nicholas Kearns. Mr D'Arcy went on to say:

"It has been put to me by some people that there are some judges who operate with no regard for the guidelines. That has to stop. If it doesn't happen in the manner we think and believe it should by the judiciary in the next 15 months or so, the Oireachtas is willing to intervene,"

"I don't want to end up in a row with the judiciary, the insurance industry or the legal world. But between all three, we have the most expensive awards in the world."

The Oireachtas plans to make changes so there can be a recalibration of awards by the judiciary. Earlier this year, the PIC recommended that judges compile new guidelines to greatly increase levels of consistency, increase the early resolution of claims, reduce costs and provide a "much better-informed PIAB process".

None of the proposed processes can begin until there is legislation allowing for the setting-up of a new Judicial Council for proposed changes.

The PIC has recommended the Law Reform Commission examine the possibility of developing constitutionally sound legislation to delimit or cap the amount of damages which a court may award - at least in respect of some or all categories of personal injuries.

It is stated that the cost of motor insurance has dropped over the past 12 months by about 8 per cent, however, motor premiums increased by 11pc and 30pc in 2014 and 2015 respectively, followed by 12pc in 2016 so has anything really changed?

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Justin Kavanagh
Justin Kavanagh is a recognised leader in automotive intelligence and vehicle data supply to the entire motor industry. He has almost 20 years experience in building systems from the ground up. As the Managing Director of Vehicle Management System, he understands the need and importance of trustworthy and reliable vehicle history and advice to both the trade and the public.
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