Government plans referendum to curb whiplash compo; FF warns against it

Brendan Burgess

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Fianna Fáil warns against a 'knee-jerk' referendum on whiplash compensation

On Saturday, the Irish Independent revealed Government plans to hold a referendum to override judges' discretion when it comes to compensation claims if the judiciary does not drastically reduce whiplash and soft injuries damages in less than two years.


Figures from the Personal Injuries Assessment Board (PIAB) show that the average award for a whiplash injury is just short of €20,000. This is around five times the average payout for whiplash in England and Wales.

Any move to restrict judges' discretion over compensation payments should not be made in a "knee-jerk" fashion, Fianna Fáil has warned.
 
Red herring. The government doesnt need referendum to bring in proper perjury laws does it... yet sits on its hands while people are caught out in court lying.

Health care is free on the NHS. Good luck getting the equivalent here without waiting long time or shelling out.
 
Hi Odyssey

Two separate issues.

Genuine claimants with whiplash are getting €20k compensation.

That is not related to the false claims problem.

Brendan
 
Hi Odyssey

Two separate issues.

Genuine claimants with whiplash are getting €20k compensation.

That is not related to the false claims problem.

Brendan

I think also there is idea behind it that reduced payouts will reduce false claims.

Comparison to Uk figures are meaningless though as Uk healthcare is free. If I suffer a soft tissue issue here, without medical card, physio visits are 70 euros. I have to pay for all OTC medicines which are also far more expensive here.
 
PERJURY.

Not every civil action that fails can be presumed to have been grounded on perjured evidence.
Civil actions can fail because the plaintiff failed to discharge the burden of proof.
In a civil action the burden of proof is that of the balance of probabilities. That means proving that something is at least 51% more likely than not.
IMHO perjury should be put on a formal statutory footing. That said, some determined liars will roll the dice anyhow because the likely gain makes it worthwhile.

DAMAGES.

The judges bear a big responsibility for the level of damages as they set them.

You could make a decent offer to a plaintiff's lawyers. However, if they know that the judge on that circuit or the HC judge before whom the case is listed will give more they will just laugh at your offer. I suspect that is also why some PIAB offers are rejected and contested in court. Incidentally, some HC judges don't seem to find the PIAB book of quantum to be helpful ;)

Damages fall in to two broad classes ;

Special damages cover identifiable out of pocket expenses like lost earnings, doctor's bills, car repairs and the like.

General damages cover the rest of the contingencies like pain and suffering to date, pain and suffering in to the future if justified on the medical evidence, future loss of earnings / future lost earning capacity and such like.

Cases involving future financial/economic losses are a source of difficulty as the capital sums required to compensate future losses in serious incapacity cases have become high - this is a whole novel in it's own right. This aspect of serious incapacity cases cannot be reduced without destroying future needs of people who are genuinely disabled.

The general problem with assessment of damages is that you must indemnify or make the plaintiff whole again. In principle, this means putting them back in to the position that they enjoyed at about one second before the accident.

In relation to special damages there is no rational justification for chopping those back. If your actual financial losses to date are € X that is what you should receive.

The level of damages for pain and suffering seems to be the basic problem. As a society we seem to want to be paid high levels of damages but not to be prepared to pay for the cost of it given that the primary source of funds for these matters is the insurance industry.

How does the insurance dimension work ? In round terms, insurance operates on a primary premise that all insured parties contribute to a central pool from which claims costs are financed. Pay high levels of claims costs out of that pool and the contributors must pay commensurate premiums to sustain it.

What would happen if insurance underwriters decided that it was no longer financially viable to underwrite certain classes of business and they simply shut their books ? I suspect a fairly savage collapse in compensation levels would ensue as there would be no fund to sustain the present position.
 
What would happen if insurance underwriters decided that it was no longer financially viable to underwrite certain classes of business and they simply shut their books ? I suspect a fairly savage collapse in compensation levels would ensue as there would be no fund to sustain the present position.

Doesn't work like that. Every risk has a some premium level at which it will be profitable. The cost of high premiums is just passed on to customers. We all end up paying for an out of control and unaccountable judiciary.
 
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