The revision of the Personal Injuries Guidelines has been described as a "retrograde step" by Insurance Ireland.

The Judicial Council published draft guidelines which recommend an average increase of 16.7% in awards of damages.

This increase follows a rise in inflation since 2021.

Insurance Ireland has said this revision will "undo the progress" achieved under the Government's Insurance Reform Agency.

The group claimed previous guidelines helped bring "consistency and transparency" to the court awards while reducing the Injuries Resolution Board's legal costs.

Costs

Insurance Ireland CEO Moyagh Murdock warned the revision may increase costs for insurance customers.

"Insurance Ireland and our members remain totally supportive of the Personal Injuries Guidelines and the work of the Injuries Resolution Board," Ms Murdock said.

"However, we note the Judicial Council’s report and we believe the recommended increase undermines the vital progress made to date on controlling the claims environment in Ireland.

"The Injuries Resolution Board previously confirmed that average 2023 awards were down 23% on 2020 but the increase recommended by the Judicial Council today will reverse over 70% of that reduction."

This increase will "potentially add significantly" to the overall cost of claims and drive up insurance costs, Ms Murdock said.

Feature image shows a red insurance folder, Alamy.