Written answers
Thursday, 22 October 2020
Department of Justice and Equality
Personal Injury Claims
Pearse Doherty (Donegal, Sinn Fein)
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25. To ask the Tánaiste and Minister for Justice and Equality her views on the recently published report on capping damages in personal injury actions by the Law Reform Commission; the actions she will take on foot of the recommendations; and if she will make a statement on the matter. [32024/20]
Helen McEntee (Meath East, Fine Gael)
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The Law Reform Commission (LRC) Report on Capping Damages in Personal Injuries Actions was published on 30 September 2020. It relates to a project that forms part of the Commission’s Fifth Programme of Law Reform and arises out of recommendations made by both the Cost of Insurance Working Group and the Personal injuries Commission.
The report considered whether it would be constitutionally permissible to legislate for capping general damages awards in personal injuries cases. That consideration involved an examination of four legislative models.
1. Model 1 envisages mandatory capping by way of primary legislation.
2. Model 2 envisages a presumptive cap set by primary legislation.
3. Model 3 envisages capping by secondary legislation.
4. Model 4 envisages a presumptive cap set by the judiciary which takes account of the reforms arising from the establishment of the Personal Injuries Guidelines Committee under the Judicial Council Act 2019.
The conclusion reached by the Law Reform Commission was that two of the possible models – Model 2 and Model 4 - appeared in principle to be constitutionally permissible.
My Department has begun to examine the recommendations of the LRC Report with a view to presenting options for progress in relation to this complex area of law to the Government by the end of the year.
This important work builds on our Programme for Government commitment to prioritise reform of the insurance sector and tackle insurance costs.
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