A new report has found that personal injury claims increased by almost 5% in 2012. The latest annual review by the Injuries Board shows compensation awards rose to €218 million last year which is an increase of 3.9%.
The Injuries Board says this increase was driven by motor claims which rose by 6.7% in 2012 and by 33.5% over the past 5 years. Personal injury claims in total have increased by 24% since 2007.
CEO of the Injuries Board is Patricia Byron. "The steady but consistent increase in claims volumes over the past 5 years is a real concern at a time when our roads have never been safer and we have fewer people at work". "The trend coincides with a significant increase in promotion and advertising by claims handling intermediaries" she added.
Culture could result in higher premiums
Last year the Board raised concerns that specialist claims-farming firms were promoting a "claims culture that could result in higher insurance premiums for consumers and business and a decline in competitiveness".
Byron adds "We need to learn lessons from the UK market, where claims handling services are promoted heavily and whiplash claims have increased by 60% since 2006".
The Board also noted concerns that the volume of serious injuries as a result of road traffic collisions in Ireland is grossly understated.
In a submission to the Road Safety Authority (RSA) the Board highlighted an opportunity to enhance data sharing and classification between the Board, the Health Service Executive (HSE), the Gardai and the RSA.
