An attack on integrity
As solicitors, we are bound by a wide array of differing requirements, including the Constitution, statute law, common law, the rules of court, and so on, writes Eamon Harrington.
We have a duty to serve the administration of justice and act in our clients’ best interests.
So it is highly concerning to have the integrity of solicitors questioned in the media on the handling of personal-injury claims. An attack like this is an attack on the integrity of all solicitors.
The insurance industry has, undeniably, been effective in spreading the narrative that fraudulent claims are endemic and that, egged on by overzealous lawyers, a culture of fraud has emerged.
They cite these simplistic platitudes as the reasons for the upward trajectory in insurance premiums. These are simply baseless assertions and must be constantly challenged.
An Injuries Resolution Board (IRB) report published in May provides insights into over 76,000 road-traffic accident claims over the last six years.
Claims were down by 30% in 2024 compared with 2019. In the same period, the total value of motor liability awards decreased by 41%.
Yet we recently read that, according to the Central Statistics Office, the cost of motor insurance increased by 8.4% over the last 12 months – more than four times the general rate of inflation. So while claims are down and awards are down, motor premiums are up.
There is also no evidence to substantiate another much-vaunted claim, that legal costs drive up insurance premiums – but there is a steady stream of reports to show that insurance companies are continuing to enjoy high profits.
It is in everyone’s interest to have a sustainable insurance market in Ireland, so profits are not a bad thing, but neither is legal representation.
Clutching at straws
For a moment, let’s consider the much-cited issue of fraudulent claims. At an Oireachtas inquiry in 2019, insurers claimed that fraud was as high as 20%. However, actual fraud claims reported to gardaí were found to be no more than 1% over a similar period.
Claims made by individuals who have suffered injury or loss through no fault of their own are not wrong or fraudulent. The law is there to protect all of us, and people who have suffered injury or loss are entitled to seek fair compensation.
The Law Society fully supports the cost-effective and timely resolution of claims, including through alternative-dispute-resolution methods like the IRB.
We wholeheartedly agree with the IRB’s recent call for the law to be changed to empower them to award legal costs in a much broader range of circumstances than is currently permissible.
But it must be recognised that the IRB is not a forum where all claims can be resolved to an injured party’s satisfaction.
It is more suited to less complex cases that can be disposed of efficiently. It is only natural that people might seek legal advice before making a claim on foot of injury or loss, as is their right.
In fact, claimants are freely choosing to be advised by a solicitor in the vast majority of cases when they engage with the IRB.
They should not be denigrated for making this choice, and the Law Society will actively protect the right of any individual who chooses to seek independent legal advice in any context.
The reality is that litigation is generally reserved for more complex cases when other dispute-resolution methods have failed.
Litigation is an important complement to the injury-claims process. And yes, by their nature, these can take longer to process and resolve, on average, compared with simpler cases.
The time has long passed for there to be far more transparency on the calculation of insurance premiums. And if legislation is required to make this a reality, it should be enacted.
It is very disappointing to see some representatives of the insurance industry deflecting blame to the legal profession and those that seek legal representation. It’s also time for more forensic fact-checking of misleading assertions relating to fraud and legal practice.
Representing the profession
I also wanted to remind you that nominations will open on 19 August for the Law Society Council elections. I for one have found the work as a council member challenging, but highly rewarding, and recommend getting involved especially if you want to make a difference in supporting your profession.
We are keen to increase the diversity of our membership, so we are more widely representative of the profession we serve.
So, if you want to see change and contribute to decisions that benefit the profession, consider running for election this year.
If you’re curious about what’s involved, current Council members Sonya Lanigan and past president Stuart Gilhooly share their experience and reasons for being on Council in this month's Gazette. Learn more at www.lawsociety.ie/elections.
Eamon Harrington is President of the Law Society