Insurance Ireland today called for the Government to postpone increasing the monetary limits of the District and Circuit Courts to €15,000 (from €6,350) and €60,000 (from €38,000) respectively for personal injuries, as per the Courts Bill 2013 currently before the Dail.

Insurance Ireland’s view is that increasing the monetary limits of the District and Circuit Courts at this time would lead to an increase in awards, legal costs and litigation and a reduction in cases being dealt with by the Injuries Board. This would militate against reducing claims costs. As premiums are dictated by claims costs, there would be upward pressure on premiums for consumers and businesses.

Michael Horan, Non-Life Manager, Insurance Ireland said: “We believe that more consideration needs to be given to the infrastructure around supporting the proposed increased monetary limits. The new legal costs control regime which will flow from the Legal Services Regulation Bill will be an important element in this. It would be inadvisable and very costly, in our view to increase the monetary limits of the District and Circuit Courts until the new regime is in place and is shown to be successful in controlling legal costs”. 

The other main infrastructural element to consider is the capacity of the lower courts to deal with the increased workload which will ensue by virtue of the increase in monetary limits and increased litigation. Delays lead to increased claims costs and Insurance Ireland have a strong concern that the District and Circuit Courts would not be able to cope with heavier caseloads based on present levels of resourcing. Insurance Ireland believe that more consideration needs to be given to the capacity of the lower courts to cope before the proposed monetary limit increases are implemented.

“We strongly believe that the proposed increases in the monetary limits of the District and Circuit Courts should be postponed to allow time for further consideration of and consultation on the above matters,” said Mr Horan.