A controversial proposal to increase personal injury award guidelines by almost 17% will not be voted into law. The Judicial Council's proposal required legislative change and faced criticism from several groups, including insurance companies and the National Competitiveness and Productivity Council. Justice Minister Jim O'Callaghan's memo states that the guidelines will be laid before the Oireachtas, but no resolution to increase award levels will be pursued. This decision is perceived as a setback for the legal community and a win for those concerned about rising insurance premiums.
Insurance companies had warned that such a rise would have led to even more premium rises. Personal injury guidelines are used by the courts and the Injuries Resolution Board when assessing injury claims.
Next week's full Cabinet meeting will be presented with Mr O'Callaghan's memo which effectively says the Government should not move to increase injury award levels.
Business and consumer groups claim that higher awards will act as a greater incentive for lawyers to encourage their clients to avoid settlements in the Injuries Board.
This is seen as a major blow for the legal fraternity, but a victory for the likes of the Alliance for Insurance Reform.
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