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Effect of raising the jurisdiction limits of the courts on PI claims

  • 27-03-2017 5:16pm
    #1
    coylemj
    Registered Users, Registered Users 2 Posts: 25,624 ✭✭✭✭


    I received my motor insurance renewal notice form Axa today and there is a leaflet included which I regard as a softening up exercise to 'explain' why my premium has risen by 35% despite no claims and no penalty points.

    One of the three reasons for increased premiums is this.....
    • Changes to the courts system allowing the lower courts to award higher damages

    I'm puzzled by this - if the jurisdiction of the Circuit Court goes up and thus a number of PI cases can be heard there rather than in the High Court, shouldn't this (1) be neutral in terms of the amount of money awarded but (2) have the effect of reducing the legal fees for cases which are now heard in the lower court?

    I was under the impression that the insurance business actively lobbied for increased thresholds for the lower courts precisely to reduce legal fees. Am I wrong?


Comments

  • #2
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    coylemj wrote: »
    I received my motor insurance renewal notice form Axa today and there is a leaflet included which I regard as a softening up exercise to 'explain' why my premium has risen by 35% despite no claims and no penalty points.

    One of the three reasons for increased premiums is this.....
    • Changes to the courts system allowing the lower courts to award higher damages

    I'm puzzled by this - if the jurisdiction of the Circuit Court goes up and thus a number of PI cases can be heard there rather than in the High Court, shouldn't this (1) be neutral in terms of the amount of money awarded but (2) have the effect of reducing the legal fees for cases which are now heard in the lower court?

    I was under the impression that the insurance business actively lobbied for increased thresholds for the lower courts precisely to reduce legal fees. Am I wrong?

    The insurance companies were against the increasing of the jurisdiction because of the phenomenon of "award drift". This is the tendency of judges in the lower courts making awards throughout the range of their jurisdiction. A trivial award may have been 7K, just above the old floor of 6.3k in the Circuit Court. The judge now gives 16k for a similar, which is just above the new floor of €15k.

    That is the insurance companies' story, along with the fact that legal fees are too high and most people who claim to be injured are chancers.


  • #3
    hullaballoo
    Administrators, Entertainment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 18,774 Admin ✭✭✭✭✭hullaballoo


    coylemj wrote: »
    I received my motor insurance renewal notice form Axa today and there is a leaflet included which I regard as a softening up exercise to 'explain' why my premium has risen by 35% despite no claims and no penalty points.

    One of the three reasons for increased premiums is this.....
    • Changes to the courts system allowing the lower courts to award higher damages

    I'm puzzled by this - if the jurisdiction of the Circuit Court goes up and thus a number of PI cases can be heard there rather than in the High Court, shouldn't this (1) be neutral in terms of the amount of money awarded but (2) have the effect of reducing the legal fees for cases which are now heard in the lower court?

    I was under the impression that the insurance business actively lobbied for increased thresholds for the lower courts precisely to reduce legal fees. Am I wrong?
    You've got it in one there.

    The increased jurisdiction of the DC and CC will see reduced claims costs not least because reduced legal fees naturally flows. The scale of fees in the lower jurisdictions are drastically lower than the High Court and then in the DC, you don't get barrister's appearing unless they are certified due to the complexity of the case. Equally, in the CC, you don't get senior counsel unless they are certified.

    As against 4ensic's post, the more likely outcome is that judges in the lower jurisdictions will award less for comparable injuries that previously would have been brought in the higher jurisdiction since judges in lower courts are conditioned to give out awards on a particular scale and that is going to take a long time to adjust in light of the new jurisdictional limits, if it ever does.

    I'm afraid as per the numerous posts here and elsewhere on this site, insurance companies are simply lying about the reasons for increasing premiums.


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