Ken O'Flynn TD Blasts Government's "Lunatic" Plan to Hike Injury Awards - Warns of Insurance Shockwave for Irish Families and Businesses
Ken O'Flynn TD Blasts Government's "Lunatic" Plan to Hike Injury Awards - Warns of Insurance Shockwave for Irish Families and Businesses
“This is not reform—it is sabotage. This Government is about to reverse a decade’s worth of progress, hand victory to vested interests, and load another unaffordable burden onto the shoulders of every Irish household and enterprise.”
Ken O’Flynn TD, Chair of Independent Ireland, has issued a blistering warning to the Government ahead of Cabinet’s expected decision to approve a 17% increase in personal injury awards—a move he condemns as “economically reckless, socially destructive, and legally indefensible.”
Deputy O’Flynn’s remarks come in support of the Irish Hotels Federation (IHF), which today warned of the devastating consequences this increase would have on the country’s already fragile tourism and hospitality sector. O’Flynn extended that concern to every corner of the Irish economy, from restaurants and pubs to community halls, self-employed tradespeople, sporting clubs, and small businesses already squeezed by inflation, wage pressures, and punitive taxation.
“No other government in Europe would dream of pushing through a 17% rise in awards without a single economic impact assessment. This is policymaking by judicial whim, rubber-stamped by a Cabinet that seems hell-bent on driving up the cost of living and the cost of doing business.”
A European Outlier — And Proud of It?
Deputy O’Flynn cited clear international comparisons:
In Ireland, soft tissue injury claims remain 4 to 4.5 times higher than in England and Wales (Personal Injuries Commission, 2018; reaffirmed 2024).
Motor insurance in Ireland averages €616, nearly double the EU average of €315 (Insurance Ireland, 2025).
Ireland is now second only to the United States in levels of compensation for minor personal injuries—yet unlike the U.S., has no cap, no class action offsets, and no federal oversight.
“We are utterly out of kilter with Europe—and we are proud of it. No wonder insurers laugh all the way to the bank while cafés in Ballina, barbers in Bray, and boutique hotels in Bantry shut their doors because they cannot pay their public liability insurance.”
A Broken System, Now Being Burned to the Ground
O’Flynn highlighted that recent insurance reforms—particularly the 2021 Judicial Guidelines and the creation of the Injuries Resolution Board—reduced median awards by 42% and were starting to stabilise premiums for policyholders. Yet the Judicial Council now admits that it conducted no meaningful data review of the existing framework before recommending the 17% hike.
“Imagine a builder being allowed to redesign a house without looking at the foundations. That is what the Judicial Council has done. And the Government, astonishingly, intends to give them planning permission.”
He described the current model as “a gravy train for litigation firms, insurers, and elite insiders” and said the public is footing the bill. Ireland’s insurance ecosystem, he noted, is now characterised by:
A duopoly of providers with minimal market competition.
A persistent failure to regulate profit margins and legal fees.
No EU-wide oversight or mechanism for standardisation—despite Ireland’s reliance on the Single Market.
An Attack on Every Community and Small Business
“This is not just about hotels,” O’Flynn said. “This is about the cost of GAA clubs trying to insure their pitch, about your local crèche wondering if it can afford to stay open, about the food truck that’s been refused cover three years in a row. It’s about the woman who breaks her ankle in a shopping centre and is handed €80,000, while a centre in France or Denmark would award a third of that.”
He warned that any increase in awards will immediately translate into skyrocketing premiums across public liability, employer’s liability, and motor cover—many of which have already increased by 50–70% over the past three years.
“This Government claims to care about cost-of-living. But their actions speak louder. They are deliberately lighting a fire under every SME in this country—and telling the rest of us to be grateful for the warmth.”
Independent Ireland calls for:
An immediate halt to the proposed increase in awards.
A full Oireachtas-led public review into the Judicial Council’s recommendation, with a legal, economic, and actuarial cost–benefit analysis.
The publication of sectoral impact data—particularly for hospitality, childcare, retail, tourism, and the voluntary sector.
The appointment of a Regulatory Commission on Insurance Premiums with the power to investigate pricing structures and market fairness.
A roadmap to align Ireland with best EU practice in injury awards and claims handling.
Final Word from Deputy O’Flynn:
“I did not come into public life to watch Irish businesses collapse under costs that are artificial, arbitrary, and politically manufactured.
This Government had one job—reduce the burden. Instead, they’re increasing it. If they proceed with this, they are not just negligent—they are complicit in the destruction of our social and economic infrastructure.”
