Personal Injury Legal Costs & Rising Car Insurance Premiums: 4 Myths Busted!

by | Jan 11, 2017 | Personal Injury

Car-Insurance-Climbs-and-so-does-Personal-Injury-Legal-Costs

Only days into the New Year and once again news headlines are focused on rising insurance premium costs.

As the real causes of rising car cover costs are at last being laid at the door of the Irish insurance industry itself, it is now time to finally bust some of the myths still being put forward by their PR machine.

Myth #1: “It’s the higher legal costs in Ireland which are causing the rise in premiums”

In Court proceedings, whoever wins the case gets an award of costs in their favour. So, if you win your case, you win your legal costs (well, most of them).

In my own firm (and solicitor firms generally), it is usual practice to assess a claim at the outset and if we deem it unlikely to be successful, we advise our clients not to bring the case and we will not accept a retainer to bring a case that we believe is a clear loser.

We do not believe putting our clients at risk under any circumstances for a case that is likely to be unsuccessful and just result in a needless bill of tens of thousands of euro.

Without proper legal advice, the uninitiated need to be wary, as suing for a case, can cost you more than what the case is worth. Underlying all the advice that we give is our knowledge as to what constitutes a likely successful claim, in other instances accidents are just accidents and there may be no one to blame. (In my own firm’s case, it is knowledge gained from our experience of defending such cases that provides an added insight here).

Myth #2: “Awards for personal injuries are higher in Ireland than across Europe”

It was a perceived crisis around High Court awards of compensation that led to the establishment of the Injuries Board back in 2004. This was on the back of much published pronouncements by the Insurance sector that awards were too high as were associated legal costs. Government concerns at the time reacted by setting up the Injuries Board much to the delight of the insurance industry!

To address this the Book of Quantum was introduced and the Civil Liability and Courts Act 2004 required that the Court in assessing damages in a personal injuries action must have regard to same. This Book of Quantum was updated in 2016 as the same had become outdated as was frequently commented upon by the judiciary.

However, the insurance industry is still not happy! It is important to remember, that insurance companies do not exist to pay out compensation; they exist to make profits. At the same time if they were no claims there would be insurance companies.

The rise in premiums now reflects the fact that for the last many years during the recession, people could not afford insurance and stopped buying that insurance which they didn’t have to have e.g. life cover, buildings insurance, public and employers’ liability etc.

Indeed, as the report from the RSA published recently shows thousands have also stopped buying car insurance, even though it is compulsory.

In addition, the insurance companies, like the banks, kind of lost the run of themselves and entered a price war with each trying to outbid the other as to how low a premium they could offer. Two companies in particular felt the brunt of this: Setanta and Enterprise insurance went bust, leaving thousands of motorists stranded.

Myth #3: Injuries Board assessments of compensation are frequently deemed inadequate and rejected by lawyers just to increase legal costs.”

When the Injuries Board make an Assessment, both sides (the claimant and the defendant) have time allotted to either accept or reject the Assessment. From a review of the Injuries Board 2015 Annual Report, they record that of 11,734 awards made, 6716 were accepted thus being an acceptance rate of approximately 58%, i.e. 42% of Assessments are rejected.

The insurance companies can reject Assessments…and they often do!  They do not have to give reasons, in such event simply a permission issues (called an Authorisation) to allow the case proceed to Court.

Clearly in such instances this is an indicator that liability is likely to be contested if the case proceeds to Court and 9 to 18 months after the accident is very late to commence retrospectively to gather evidence in your case.

This is one of the main reasons why most claimants seek legal advice before proceeding to the Injuries Board i.e. to protect their position and in order that someone is safeguarding them while they go through what is often a lengthy and bureaucratic process.

Clearly there are cases where a claimant rejects the Assessment. This is because it is too low or because ongoing and future suffering or expense have not been considered.

It is generally upon legal advice that the Assessment might be considered too light and that a Court would award a higher amount. It could also be that a claimant’s injuries have not yet settled to the extent that a long-term prognosis as to recovery is available (in which case it would be ill-advised to conclude a case where you cannot yet assess the long-term loss sustained).

Myth #4: “There’s no penalty to not accepting an Award made by the Injuries Board.”

Oh but no, there is! Only yesterday, I heard this mentioned on the radio as an explanation as to why solicitors zealously advise clients to reject an Assessment from the Injuries Board.

However, the improper rejection of an Injuries Board Award is not without risk of serious penalty.

Section 51A of the Personal Injuries Assessment Board (Amendment) Act 2007, provides that where an Assessment is rejected by a claimant (having been accepted by a defendant), and the amount of the Assessment is not exceeded in Court proceedings or an agreed settlement then;

  • – No award of costs may be made to the claimant
  • – The Court may exercise its discretion to award costs against the claimant (i.e. that the Claimant pays the defendants legal costs as well as their own), a very hefty penalty indeed.

In summation, insurance companies won’t admit that the rising premium is caused by their flawed business model. It’s much easier to blame you! For more information and help get in touch with our personal injury solicitors here.

INDEPENDENT GOOGLE CLIENT REVIEWS

Aileen Power
Aileen Power
16:36 10 Mar 23
Carmody Moran recently helped me with the sale of my home. Niamh, Caila and all the team were fantastic to deal with from start to finish. They explained everything so clearly, were extremely professional, efficient and always responded promptly. On top of that they were just such a friendly group of people to deal with. I would highly recommend them.
Guillaume Rachet
Guillaume Rachet
16:25 20 Jan 23
The client service was really great. Understanding, easy to deal with and reactive
Joe Marsh
Joe Marsh
17:59 26 Sep 22
We recently closed on a first time house purchase and we were very pleased with how the whole process was handled at Carmody Moran. They always responded clearly and promptly to the many queries I had along the way and were on the ball with following up issues with the sellers solicitors to keep the process moving.The reason I went with them originally over other options was because they gave a very clear breakdown for the charges and the quoted price we were given was transparent and easy to understand compared to other quotes I received.I will definitely use them again if the need arises and recommend them to my friends and family.
Kenneth Ohaa
Kenneth Ohaa
09:52 01 Sep 22
I got the keys to my new house a few weeks back. I cannot recommend Carmody Moran Solicitors highly enough. It was a bit lengthy as I was buying and selling at the same time. In such cases you need experienced and competent solicitors such as Carmody Moran Solicitors.Stephanie and Helen were a pleasure to work with. Very transparent and communicative. Also occasionally dealt with Lucy and Caila. They were brilliant as well.I would like to say Thank you to the entire Carmody Moran team.Kenneth
Salt Almighty
Salt Almighty
06:16 10 Aug 22
I needed a solicitor to arrange a mortgage, and they went above and beyond to help me !I would advise them to anyone
Andrew NEROH
Andrew NEROH
19:39 04 Jul 22
My partner and I recently made the acquisition of our first home and it was a lengthy and difficult process, due to the fact we were buying from a receiver.In such difficult cases, you will need a legal representation as competent and professional as Carmody Moran Solicitors on your side.We were primarily dealing with Stephanie who gave us regular updates, helped us understand what is happening and what to do. We felt our interest always came first which made every appointment with her something we looked forward to.We were also occasionally in contact with Lucy, Niamh and other brilliant members of the firm, all of whom provided an excellent level of support and knowledge in Stephanie's absence.I couldn't recommend Carmody Moran enough. I would like to give a heartfelt thank-you on behalf of myself and my partner to every one involved at the firm who helped us make our dream a reality. We will not hesitate to call upon your services again should the occasion arise.Andrew.
jonathan
jonathan
16:14 28 Jun 22
I would highly recommend Carmody Moran Solicitors. Niamh Moran and her team helped and supported me through the sale of my home. The transaction was dealt with efficiently and quickly. Every step was clearly explained from the Sale Questionnaire, Contract for Sale to Completion.
Herghelegiu Oana
Herghelegiu Oana
22:44 20 Jun 22
We just got the keys to our dream home 🏡 special thanks to Stephanie,Helen,Caila and Carmody Moran team.All the girls are very friendly and helpful.Stephanie was a pleasure to have you as our solicitor.Highly recommend!
Karolina Siwakowska
Karolina Siwakowska
20:00 28 Mar 22
We've just got the keys to our dream home and Carmody Moran has helped us with all the legal work. We've been dealing with Stephanie and Helen and they both have been great: friendly, professional and communicative. The whole process can be intimidating at times, but they've made sure to make it as easy as possible for us. They've represented us well. Highly recommended.
ciara daly
ciara daly
16:27 18 Feb 22
Anthony and his team went above and beyond for me, everything was always looked after and I was constantly kept in the loop for my RTA case. From phone calls to emails to dealing with insurers. Gave me great peace of mind that I chose the right solicitor and Anthony himself is a gentleman. I would highly recommend Carmody Moran Solicitors.
Cassandra Reyes
Cassandra Reyes
11:11 14 Jan 22
Tony is quick and responsive to me. Very professional and would definitely recommend to my family and friends.Thank you so much.
Martin Kinsella
Martin Kinsella
17:23 15 Dec 21
CarmodyMoran were a pleasure to deal with. I found them to be extremely helpful in all my queries and responded to me in a very personal and professional manner.
Marie Byrne
Marie Byrne
14:06 30 Nov 21
Anthony & Niamh are our family Solicitor, so had no hesitation when the decision was made to sell of our family home. They dealt with my dad in the most caring manner explaining everything in detail. I dealt with Helen Ryan and Stephanie Tierney. The response to every query was exceptional. An absolute pleasure to deal with. If they were unavailable Emma at reception would pass all messages on. It was a very positive experience and a fantastic team at Carmody/Moran Solicitors. Thank you. Marie Byrne
Jennifer Foley
Jennifer Foley
18:13 27 Nov 21
Excellent.I am a client of Carmody Moran for the last few years.Niamh is a lovely person she made a difficult and lengthy process easy and answered any questions in a timely manner, very approachable and thorough.With her guidance and experience I found her to be very professional and understanding of my position, every step of the process was explained to me without overwhelming me.I cannot speak highly enough of Niamh and her team.I am happy to recommend them to anyone.
Richard Lawrence
Richard Lawrence
13:04 02 Sep 21
Would highly recommend.Tony and his team were absolutely brillant dealing with my case.Tony made me feel comfortable from day one, he explained everything to me at all times . Any time I had questions about thing's there was no problem in picking up the phone or sending a email Tony always got back to me and answered my questions.Fantastic service.
Fran Carroll
Fran Carroll
18:10 10 Jun 21
Tony an his team are brilliant.Left no stone unturned.
We availed of Carmody Moran Solicitors for the sale of our property. Niamh and her team were very efficient, quick, easy to reach and, most importantly, proactive to solve issues and process the sale. Really happy with the service and a very good value for money. Highly recommend!
Annamay Rowan
Annamay Rowan
12:21 10 Mar 21
Would highly recommend Anthony Carmody as he was so supportive with me and my family's case. If you made contact he would ring or email you back that day and explain things in your language.
Anant Batra
Anant Batra
00:05 05 Feb 21
Fantastic experience dealing with Anthony. Excellent and quick communication. Would highly recommend!
Elvyra Petkeviciute
Elvyra Petkeviciute
15:43 02 Sep 20
Great service, efficient, proffesional, very responsive. Over all very happy with services.
Tracy Ankers
Tracy Ankers
11:22 02 Aug 20
Would highly recommend Anthony and his team .
Elaine McSweeney
Elaine McSweeney
10:01 31 Jul 20
Really pleased with the advice, help, communication and understanding that I received all the way through my case. A very personable and professional firm with the focus always on the client.
Maxine Hudson
Maxine Hudson
13:47 12 May 20
Would highly recommend. No nonsense straight to the point. Kept informed at all times during the process. Anthony and staff all great.
Mark Kelly
Mark Kelly
02:11 06 Feb 20
Great team to deal with, very professional, communication from them constantly was beyond amazing, nothing but great things to say for them, Tony went above and beyond for me, highly recommended A++ for there service, thank you again guys much appreciated.
Mick Giles
Mick Giles
15:50 09 Dec 19
My experience with this law firm was exceptional. Tony is a very professional man who gave me his time and opinion without over promising on the result. Honest and trustworthy - Highly recommend
david clarke
david clarke
17:01 02 Dec 19
Absolute pleasure working with the CM team. Highly professional, always helpful. Great communication and made the process as hassle free as possible. Highly recommended.
Matthew Canning
Matthew Canning
17:17 23 May 19
Streetfront Lawyers.
Alan Alyyan
Alan Alyyan
19:14 21 Jan 19
Professional Solicitors that you can depend on!
Vanja Jovanovic
Vanja Jovanovic
07:49 06 Jul 18
We have dealt with both, Niamh and Anthony. Very pleased with the level of service. Very professional and always there to answer any questions we had while guiding us through the process. Highly recommended
Bonnie B
Bonnie B
07:52 14 Jun 18
Great to deal with professional,patient and efficient. Big thanks to Niamh, Leanne and Camilla .
declan mcgrath
declan mcgrath
07:36 12 Jun 18
Great service from Niamh, Leanne and all the team at Carmody Moran. Thanks
Phyllis Dalton
Phyllis Dalton
16:33 31 May 18
Our experience with Carmody Moran was very positive. They were very professional and always there on the phone if I ever needed anything. Great service.
Andrew Penrose
Andrew Penrose
23:57 24 May 18
We selected Carmody Moran to represent us. Great experience with Niamh and the crew after over a year engagement on property dealings have nothing but great things to say. Very professional, prompt to queries and very responsive. Highly recommended.
Paul Moran
Paul Moran
17:52 25 Feb 18
Professional but very friendly and courteous.
jingjing xu
jingjing xu
16:11 15 Jun 15
I went to Carmody after deciding to get a house. I found their work is detailed and very reliable. I will go again to them for next time legal service.
David McGowan
David McGowan
16:43 14 May 15
I went to Carmody Moran Solicitors after a car accident and needed injury claim advice, I was incredibly impressed and was kept well informed of how my claim was progressing.They were very straight forward and never set unrealistic time frames or over promising but delivered on everything, They were consummate professionals and I really can't thank them enough, I would highly recommend them to anyone and I will use them for any legal advice I may have in the future.
Terry Palmer
Terry Palmer
15:24 23 Apr 15
I have always found the service offered by Carmody Moran to be first rate and i would would have no hesitation in recommending them.
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