15% rise in motor liability claims by pedestrians in 2024
There was a 15% rise in motor liability claims among pedestrians last year, while motorcyclists account for just 2% of personal injury claims but represent one in ten fatal claims.
Those are among the findings from the Injuries Resolution Board’s latest report, which reviews motor liability accidents and claims in Ireland between 2019 and 2024.
According to study, pedestrians experience a five-fold higher risk of fatality in road traffic accidents and – along with motorcyclists – are the most vulnerable road users.
Based on the data, other high-risk groups include younger adults (aged 20-24), who make up 6% of the population but double the proportion of fatal incidents (13%), and adults over 65, who represent 15% of the population but accounted for one in four fatal incidents between 2019 and 2024.
The report found that over the six-year period more than 70,000 claims relating to road traffic accidents were submitted to the Board, and that over €284 million was saved in avoided legal fees by claims being resolved through the process rather than through litigation.
It said there was a 4% increase in motor claims on last year, but that overall motor claims are down 30% from 2019 – despite a return to pre-pandemic traffic volumes.
Over €500,000 awarded for fatal or serious incidents
Between 2022 and 2024, the Board awarded over €500,000 for fatal or serious incidents resulting from head-on motor vehicle collisions, while from 2019 to 2024 over €370m was awarded for injuries sustained by car drivers, followed by car passengers (€160m), pedestrians (€55m), cyclists (€53m), and motorcyclists (€24m).
Also among the findings was that neck and back injuries were the most common injuries sustained in 58% of motor liability awards in 2024, while psychiatric damage injuries accounted for 16% of awards, with car passengers being the most affected group.
Commenting on the report, Minister for Enterprise, Tourism and Employment Peter Burke said the Injuries Resolution Board “is uniquely placed to report on personal injuries in the State and in so doing provide valuable insights for claimants, policy makers and the insurance market.”
He added that it “brings into sharp focus the tragic accidents occurring on our roads and delivers useful information to assist with road safety, hopefully leading to a reduction in future accidents.”
Increase in claims for fatal road traffic accidents
Head of Research and Policy at the Injuries Resolution Board, Dr Lauren Swan, has said there has been a 30% decrease in personal injuries in claims related to road crashes and incidents over the last six years.
Speaking on RTÉ’s Morning Ireland, she said at the same time, they have seen an increase in claims for fatal road traffic accidents.
“They’ve increased by 20% over the last three years alone. Overall, while volumes are down, the impact of tragic and fatal accidents continues to increase.”
In relation to the cost of claims, she said that in 2024 is the median award value a claimant received having been injured in a road traffic accident was €12,510.
This represents a 30% decrease on what the median value of compensation was in 2020, which was before the Personal Injuries Guidelines were introduced in 2021, and when claims were assessed under the Book of Quantum.
“What we can see is that not only are the number of claims down, the value of claims that come through our service are also down, but people are still opting for litigation. At the moment, we have a 50% acceptance rate, which means that 50% of cases that we assess are resolved through our service,” she said.
“But I think we still have more work to do in ensuring that the public understand the role of the board and what you can expect if you decide to reject an assessment made by the board.
“The first is that the exact same guidelines are used by both the board and the courts in assessing compensation that should be awarded.”
Half of cases settled outside of court
Dr Swan said that the majority of the other 50% of cases are settled by insurers outside of court.
“What we know is only around 2-4% of all personal injury cases are actually set, assessed or resolved via a court award.”
Dr Swan said a report published by the Central Bank in April found the value of compensation awarded by the board was the same.
She said that the only difference was that the average legal fees within court were 24 times higher, and the average time for cases through litigation to be resolved was over three years longer.
“It’s in everyone’s best interest to see more and more cases resolved through the Injuries Resolution Board,” she added.
In relation to motor insurance premiums not coming down, Dr Swan said that there are a number of factors that ultimately influence insurance pricing.
But, she said, insurers identified personal injury claims costs as the key driver of premiums and the availability of insurance in the State before the personal injuries guidelines were introduced.
“And there is also a lack of any data on trends and claims and award values historically. So that’s what today’s report is aiming to try and increase here.”
She added that the role of the Injuries Resolution Board “is to just keep on increasing the transparency in this area.”
“The more data we can show for the first time on the volume of claims, on the cost of claims, the more that we can continue to spread awareness around the role of the board, the better,” said Dr Swan.
Litigation adding significant costs
In response to the publication of the report, Insurance Ireland have released a statement noting that the Injuries Resolution Board has awarded over €700m in compensation for injuries sustained in almost 40,000 motor accidents over six years.
Insurance Ireland say that “there were significant savings in legal fees by going this route, rated than opting for expensive litigation”.
The statement continues, saying: “The trend of settling personal injury claims through the expensive litigated route continues to add significant cost, despite the fact that it doesn’t add to the levels of awards the claimant receives via either the Injuries Resolution Board process or directly settling claims with insurers.”
“According to the Central Bank’s National Claims Information Database report on Employers’ and Public Liability for 2023, published on 19 March this year, just 5% of overall personal injury claims costs were settled in 2023 through the Injuries Resolution Board and a further 5% were settled directly with insurers, either before or after the IRB.”
Insurance Ireland concluded their statement by saying that this underlines the role of the Injuries Resolution Board, and that the need to increase the number of settlements without the need for unnecessary litigation “is critically important for consumers and businesses alike.”
Article Source – 15% rise in motor liability claims by pedestrians in 2024 – RTE