Written answers

Tuesday, 17 November 2009

Department of Health and Children

Medical Negligence Awards

10:00 pm

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Question 215: To ask the Minister for Health and Children the position regarding the award and subsequent payment of medical negligence awards; if the current system of lump sum awards is in legislation or simply custom and practice; if it would be more appropriate to have a system with an annual payment; if the court has the power to so order; or the legislation which would need amendment to give effect to same; and if she will make a statement on the matter. [41540/09]

Photo of Mary HarneyMary Harney (Dublin Mid West, Independent)
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In Ireland at present, a lump sum award in respect of general and special damages is the only system of compensating victims in respect of personal injury actions, to include those who suffer such injuries by way of alleged medical negligence. Currently periodic payments, or the use of Periodic Payment Orders (PPOs), is not a feature of the Irish Tort system. However, I am informed that the power to make awards of damages on a periodic basis has been a feature of the English legal landscape for a number of years now, since the passing into law in that country of the Damages Act, 1996.

Over the past number of months the State Claims Agency has been working with a firm of actuaries to draw up a PPO blueprint to be used in catastrophic injury cases, whether caused by medical negligence or otherwise. The Agency is hopeful that it will have its PPO formulation for presentation to the courts in early 2010. At the same time, the State Claims Agency is engaging with the Department of Justice, Equality and Law Reform in relation to the introduction of a statutory PPO scheme.

Conflicting expert evidence on life expectancy, future care costs, the discount rate and other matters place a significant burden on the judiciary in hearing such cases. The plaintiff in receipt of a lump sum award must bear the mortality and investment risk that the award will be sufficient to cater for their future needs. Lump sum awards cannot by their nature take account of the changing needs of the patient. While a review of the system of lump sum awards is not a matter for me or my Department, in my view there is potential to improve the situation for all parties by allowing for periodic payments in the right circumstances. I look forward to seeing the outcome of the engagement between the State Claims Agency and the Department of Justice, Equality and Law Reform in that regard.

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