In March the Injuries Board launched their Annual Review for 2012 which highlighted that compensation awards were up 3.9% to €218m, and claims volumes were also up 4.7% or 24% since 2007.
Commenting, Patricia Byron, CEO of the Injuries Board said: “The steady but consistent increase in claims volumes over the past five 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. Last year, the Injuries 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. 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. We believe that a regulatory gap has emerged whereby solicitors are restricted from promoting their services yet claims handling firms can do so with impunity. The upcoming Legal Services Bill presents an opportunity to address an emerging claims culture by extending restrictions on advertising to claims handling firms and by introducing strict powers of enforcement and sanctions for non-compliance by all intermediaries”.
The Health and Safety Review Publication also had an interesting take on this by stating that Employer Liability (EL) cases have fallen by 9% in 2012, whereas Public Liability (PL) claims have increased by over 37% in 2012. Of all the claims made, just 8% are attributable to EL claims for workplace accidents, and the average award decreasing by almost €5,000 to €27,286, or by 15%.
As Ms Byron said it is worrying the claims culture is creeping back in following the decreases in previous years, and the 'claim farming' specialists have a lot to do with this. Employers need only look to the recent High Court case of Antoszczyk v Gatehalf Ltd. t/a the Rivercourt Hotel where the employee was awarded €50,000 having suffered a serious injury.
We are not for a second stating she was not deserving of the award after her most serious injury however, it is noteworthy that these cases are becoming more public and more regular. Employers should ensure they are protected when it comes to such issues in order to avoid potential liabilities in such cases. Papertrails of training or maintenance are crucial to defending such claims.
