Grace Boland (Dublin Fingal West, Fine Gael)
Link to this: Individually | In context

50. To ask the Minister for Finance the projected financial impact on an organisation (details supplied) if the personal injury guidelines are revised; and if he will make a statement on the matter. [24697/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

The Motor Insurers’ Bureau of Ireland (MIBI) is a not-for-profit organisation, established to compensate the victims of road traffic accidents caused by uninsured and unidentified vehicles.

At the outset, it is important to note that the Personal Injuries Guidelines are developed by the Judicial Council, which is independent in its functions. The Personal Injuries Guidelines, introduced in March 2021, have been a key element of the previous Government’s Action Plan for Insurance Reform. Since their implementation, the Guidelines have contributed to greater predictability in personal injury awards, stabilising the claims environment and increasing engagement with the Injuries Resolution Board. While the Personal Injuries Guidelines fall within the remit of the Minister for Justice, I, as Minister for Finance, fully appreciate the significance that changes to the Guidelines may have on the cost of insurance and the potential implications for recent insurance reform efforts to reduce the cost of insurance. My officials have and continue to engage with Department of Justice on the proposed amendments to the Personal Injuries Guidelines and their potential impact on the Government insurance reform agenda. However, the oversight of the Personal Injuries Guidelines is a matter for the Minister for Justice and his Department in the first instance.

Regarding the Deputy's question on the projected financial impact on the MIBI if the Personal Injuries Guidelines are revised, officials from my Department have engaged with the MIBI who have confirmed any increase in awards, as envisaged by the Judicial Council, will have an inflationary impact on the total compensation provided by the MIBI per annum. This impact could be an increase in the order of millions to the total sum of compensation provided through MIBI each year, however, it is not possible for MIBI to forecast the specific impact until the changes to the Personal Injuries Guidelines are enacted.

Work is underway to develop a new Action Plan for Insurance Reform, which will focus on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance. To support this, Minister of State Troy, and I launched the public consultation phase of the Plan which is available to view on the Department of Finance website and is open to submissions until 19 May. This is an important opportunity to shape the future of insurance in this country and I would encourage any interested individual or organisation to make a submission and ensure their views are considered in the development of the new Action Plan.

Grace Boland (Dublin Fingal West, Fine Gael)
Link to this: Individually | In context

51. To ask the Minister for Finance the projected financial impact on the State Claims Agency if the personal injury guidelines are revised; and if he will make a statement on the matter. [24698/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

The National Treasury Management Agency (NTMA) have informed me that if the amended Personal Injuries Guidelines were to come into effect, there will be a financial impact for the State authorities for whom the State Claims Agency manages claims.

The amended Guidelines provide for an across-the-board increase in damages of 16.7%, reflecting the increase in the HICP in the years since the Guidelines were first adopted. As an example, the upper limit for general damages, in catastrophic injury cases, now €550,000, would increase to €641,850.

Given his responsibility for moving the necessary Dail and Seanad motions to give effect to any changes to the Personal Injuries Guidelines my colleague Mr. Jim O’Callaghan T.D., Minister for Justice, Home Affairs and Migration outlined the position in a Commencement Matter in the Seanad on Thursday 8 May last.