The proposed amendments to the Personal Injuries Guidelines mark a significant update to Ireland’s compensation framework for injury claims, reflecting economic changes and evolving legal standards since the guidelines were first introduced in 2021. While the changes promise improved support for injured parties, they have also sparked debate among insurers and business groups concerned about potential cost implications for the wider economy.
Background to the 2025 update
Following a statutory review process under the Judicial Council Act 2019, the Board of the Judicial Council published Draft Amendments to the Personal Injuries Guidelines in December 2024. These amendments were prepared by the Personal Injuries Guidelines Committee, which had completed its detailed review and submitted its recommendations to the Board in March 2024. After considering the Committee’s proposals, the Board modified and approved the draft for publication. The draft amendments were subsequently submitted to the Minister for Justice on 4 February 2025, in accordance with Section 7(2B) of the Judicial Council Act.
Key aspects of the amended guidelines
The proposed amendments respond to two principal developments since the Guidelines were first adopted in 2021: the impact of inflation on personal injury awards and evolving case law on the assessment of damages in multiple injury cases. The Committee recommended an uplift of 16.7% to reflect inflation, with figures rounded for ease of use. The draft amendments also reinforce existing principles of fairness and proportionality, particularly when assessing damages for multiple injuries, where a holistic approach is required. While no new injury categories have been introduced at this stage, the Committee acknowledged that this remains an area for ongoing review. The draft amendments are not yet in force; their implementation depends on further approval by the Oireachtas.
Balanced awards for multiple injury claims
Dealing with multiple injuries in a single claim is challenging under the 2021 Guidelines, which rely on identifying the main injury and adding a variable “uplift” for others, often leading to inconsistent results. The new guidance promotes a more holistic approach, asking judges to assess the overall impact of all injuries and place the claimant fairly on the compensation scale, rather than simply adding percentages.
A significant uplift in awards
Catastrophic injuries will gain the largest uplift in absolute terms, should the recommendations by the Judicial Council be approved. For example, injuries resulting in a foreshortened life expectancy will increase from a maximum payout of €550,000 to €642,000. Moderate to serious injuries, such as brain damage, where good recovery is anticipated, will increase from €60,000-€140,000 to €70,000-€163,000. A moderate shoulder injury will increase from €18,000–€35,000 to €21,000–€40,800.
Potential good news for plaintiffs
For individuals who sustain life-altering injuries, the proposed increase in compensation offers vital support, especially for long-term care and rehabilitation needs. The Irish Times described the changes as “good news for plaintiffs.” However, campaigners continue to advocate for a more efficient claims process and swifter payment of awards.
Concern from insurers
The proposal has generated concern within the insurance industry and among business representative groups, who argue that any upward adjustment could reverse the positive impact of the 2021 reforms. These stakeholders caution that higher damages awards may lead to increased litigation costs, rising premiums for consumers and SMEs, and a potential reduction in market stability. Industry voices are calling on the Government to carefully balance the interests of injured parties with the broader need for economic certainty and affordability in the insurance sector.
Drop in personal injury payouts
However, contrary to insurance industry concerns about increased costs, personal injury compensation payouts dropped sharply in 2024, down 45% compared to 2023, with the number of claims also down 41% relative to 2019, driven by the introduction of the original guidelines in 2021. Despite this drop, insurance costs remain high, and many claimants continue to pursue court hearings instead of using the Injuries Resolution Board portal. The Courts Service has stated that while caseloads have decreased, the remaining cases are more complex, requiring numerous interim applications and increasing administrative strain.
Require further guidance on these changes?
If you are in the process of bringing a personal injury claim and would like to better understand how these amendments may affect your case, the team at McCarthy + Co Solicitors is here to help. Arrange a free initial consultation with a solicitor here using our confidential online form.
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