Motor insurance premiums are set to start coming down from mid-summer, according to the Junior Finance Minister.
Sean Fleming has been meeting with a number of providers, following a landmark decision by judges to decrease payouts for injuries like whiplash.
The Judicial Council approved guidelines that will mean pay-outs for personal injury claims will be significantly reduced.
Minister Sean Fleming says insurers have indicated that premiums will decrease from June.
He said: “The cost to the insurance companies will now go down, and that should be passed on to the public.
“They’ve all said they will start doing it early in the second half of this year, after June - I hope that will be the start of further reductions to come, when the new reduced payouts fully take hold.”
He suggested the insurance companies’ response has been ‘very quick’, coming soon after the release of the Judicial Council’s review.
However, he said there are no firm details yet of the level of cost reductions consumers can expect from the different companies.
He said reforms around the role of Personal Injuries Assessment Board (PIAB) are also expected in 2021 and 2022, which should also lead to reductions in awards.
New guidelines
The new judicial rules agreed last month are set to replace the current guidelines on the amounts awarded for personal injuries.
Minor neck injuries will see awards of up to €12,000, with awards of up to €20,000 for minor back injuries.
The award for minor whiplash where the claimant has substantially recovered has been reduced by more than 60% - from €15,700 to €6,000.
Where a full recovery is expected following whiplash, the individual will now receive €12,000, down from €19,400.
Damages for moderate whiplash will be a maximum of €23,000, down from €30,200.
Awards for the most severe and catastrophic injuries will be set at up to €550,000.
