- January 9, 2026
- Posted by: Colm Hurley
- Category: News
As we approach the first legal term of 2026, the personal injury landscape in Ireland stands at a critical crossroads. In 2025, the trajectory of personal injury law in Ireland was influenced by several significant factors. These included renewed scrutiny of the Personal Injury Guidelines, continued debate on litigation costs, and key policy initiatives such as the Action Plan on Insurance Reform and the Injuries Board Resolution Plan. Legislative proposals, notably the Civil Law Reform Bill 2025, together with important court decisions, also played a central role in shaping developments throughout the year. In our latest article, Nicola Kiely, Partner at CKT reviews the reviews the key changes in 2025 and the prospects for 2026.
The early months of 2025 saw significant debate concerning a potential uplift to the Guidelines. However, it was December that proved pivotal when, days before the end of the final legal term and largely under the radar, it was reported in the media that the proposed Civil Reform Bill 2025 had been brought before government with the potential to fundamentally reshape the personal injury landscape as we know it. The General Scheme of the Civil Reform Bill was published on 6th January 2026 and is poised to transform personal injury litigation in Ireland.
Personal Injury Guidelines
The Personal Injury Guidelines (the Guidelines) were introduced in March 2021 to bring transparency and predictability to the assessment of personal injury awards. The Guidelines replaced the old Book of Quantum and the Injuries Resolution Board (IRB) and Courts are obliged to have regard to the Guidelines when assessing damages. Their introduction removed the heavily criticised subjective approach adopted by the Courts when assessing damages under the Book of Quantum. The Guidelines introduced a structured approach to the assessment of damages by providing valuation bands for different categories of injuries.
Section 18(5) of the Judicial Council Act 2019 requires the Personal Injuries Guidelines Committee (the Committee) to review the Guidelines within three years of their adoption and at least once every three years thereafter. The Committee must submit their results to the Board of the Judicial Council for review. It could be suggested this review mechanism ensured the Guidelines did not become fixed, outdated and unresponsive to economic factors such as inflation.
The Committee carried out its first review during 2022 and 2023. The outcome of the review was submitted to the Board of the Judicial Council in March 2024. The Committee noted that since the adoption of the original Guidelines, significant global and national inflation had occurred. It also noted the jurisprudence of the Superior Courts regarding the proper approach for the assessment of damages in multiple injuries cases. The Committee prepared draft amendments to provide that, due to the Harmonised Index of Consumer Prices (HICP) rise of 15.6% in the three years since the adoption of the Guidelines, an overall increase of 15.6% to the original values was appropriate.
The Board of the Judicial Council considered the amendments on the 21 October 2024. It modified the Guidelines only in one respect, increasing the HICP to 16.7%. The Judicial Council met on the 31 January 2025 and the draft amendments to the Guidelines as published by the Board were submitted to the Minister for Justice for review.
The proposed amendments prompted an extensive debate amongst various groups including Business groups and Insurers who argued the proposed 16.7% adjustment could reverse the positive impact of previous reforms. However, Plaintiff representatives argued that a failure to adjust the Guidelines would ignore the effect of inflation on medical costs including long term care and rehabilitation costs.
In May 2025, the High Court in Somers v Commissions of An Garda Siochana confirmed the original 2021 Guidelines will continue to apply until any amendments are approved by the Oireachtas.
Following a meeting of the Cabinet Sub-Group on Insurance Reform on 9 July 2025, it was confirmed the Minister for Justice would not be advancing the proposed amendments to the Oireachtas and the matter would be subject to further review.
At the start of the legal term in October 2025, the Chief Justice described the failure to update the Guidelines in line with inflation as counter-productive and noted “the failure to update the Guidelines will put the Guidelines system itself at risk”. He further noted that if the IRB and Courts are increasingly invited to depart from the Guidelines and make higher awards reflecting the effects of inflation, the Guidelines “will inevitably fray” and overtime they will “petrify and decay”.
Supreme Court Clarification on delay in Kirwan v Connors & Ors
On 30 May 2025, in Kirwan v Connors & Ors, the Supreme Court delivered a landmark judgment reformulating the test for assessing applications to dismiss proceedings for want of prosecution. The Court moved away from the Primor principles, which had allowed judicial discretion for over thirty years when considering the issue of delay. Of paramount significance, the Supreme Court confirmed it is no longer necessary to identify actual prejudice. Long periods of inactivity alone can justify dismissal. This Supreme Court introduced new time-based inactivity benchmarks at 2, 4 and 5 years, providing clear guidance that plaintiffs must progress their case or risk an application to have their case struck out.
Action Plan on Insurance Reform 2025-2029
In July 2025, the Government published the Action Plan on Insurance Reform 2025-2029 (the Plan) following extensive public consultation. In the foreword, the Taoiseach noted “As a priority, we will reform how the Personal Injury Guidelines are updated, to ensure that they are informed by the views of stakeholders and the best available research”. The Plan aims to improve transparency, affordability, competition and resilience in the insurance market.
The Plan includes several priority action points scheduled for 2026, making the year ahead a pivotal one for personal injury law reform in Ireland.
The Plan proposes legislative reform, including amendments to the Judicial Council Act 2019, with the aim of (i) adjusting the review period and criteria for the Guidelines (ii) providing for mandatory consultation the IRB and (iii) providing clarity on Oireachtas oversight and timeframe of future revisions to the Guidelines. The action point is marked with priority for Q1 2026.
The Plaintiff also includes an action point to examine the level of awards in minor/moderate personal injuries, including (i) the feasibility of introducing a cap for certain categories and (ii) the introduction of a dedication model for the resolution of minor soft tissue injuries. This action point is not marked with priority with the proposed timeline Q3 2026 and Q4 2026, respectively.
In addition, the Plan includes a proposal to strengthen the powers and remit of the IRB through legislative reform and consider (i) providing default into the mediation process (ii) remittance of injury claims back to IRB where new evidence (e.g. medical report) is presented in litigation (iii) award of legal fees for claims resolved through the IRB. This action point is marked with priority and the timeline is Q2 2027
The Plan also proposes a benchmarking exercise to examine Irish personal injury awards with those in the UK and other European jurisdictions. This action point was marked for Q1 2026.
In line with the above, a Report commissioned by Minister Burke and undertaken by the IRB in collaboration with Deloitte was published on the 16 October 2025. This Report analysed over 12,000 awards and settlements made under the Guidelines between 2022 and 2024, including assessments by the IRB and settlements made by three major Irish insurers. It focused on compensation for minor neck and back soft-tissue injuries sustained in road traffic accidents, comparing Ireland with England and Wales. The Report concluded that Ireland’s awards level for these categories remain much greater than those in England and Wales, with the average IRB assessment under the Guidelines being 3.9 times higher than the corresponding average in England and Wales. The average Irish insurer settlement was also considered higher.
The Plan also contains an action point to address civil litigation costs by developing new guidelines that establish clear rates, with a particular focus on personal injury cases. This action point is scheduled for Q4 2027.
Injuries Resolution Board Strategic Plan for 2025-2029
In October 2025, the IRB launched its Strategic Plan 2025-2029. The strategy is said to support the Action Plan for Insurance Reform and against a background of global and economic uncertainty. The focus of the Strategic Plan is to increase the number of claims resolved by the IRB, ensure mediation is central to it services and to ensure higher acceptance rates for assessments.
The IRB want to improve transparency in their services through a new digital platform and this will allow parties have greater visibility on their claim journey.
The strategy refers to the importance of adhering to the Guidelines and the ultimate goal is for the IRB to be preferred route for resolving personal injury claims outside of the courts.
Civil Reform Bill 2025: Proposed Changes to Civil Procedure
The General Scheme of the Civil Reform Bill 2025, published on 6 January 2026, contains wide ranging proposals to modernise Ireland’s civil justice system. While much of the Bill focuses on judicial review and proposed amendments to that system which have dominated headlines, the Bill includes significant changes likely to affect personal injury litigation. If enacted by the Oireachtas, these measures could help reduce litigation costs, improve efficiency, and make the process more streamlined for all parties.
One of the most significant proposals is the increase in monetary jurisdiction. The Circuit Court limit for personal injury cases if enacted will rise from €60,000 to €100,000, while the District Court limit could increase from €15,000 to €20,000. This increase would mean that most personal injury cases other than those involving catastrophic or high value claims would now be heard in the Circuit Court rather than the High Court. For a more in-depth review of the proposed reforms please see an article by Barry Kelleher on the topic.
Conclusion
As 2026 begins, personal injury law in Ireland faces a period of significant transition. The rejection of proposed amendments to the Personal Injury Guidelines, coupled with the Supreme Court’s landmark ruling in Kirwan v Connors & Ors, signals a tightening of procedural standards and a renewed focus on efficiency. Meanwhile, the Action Plan on Insurance Reform and the Injuries Resolution Board’s Strategic Plan set out ambitious goals to enhance transparency, streamline claims resolution, and address persistent concerns around award levels and litigation costs.
Looking ahead, the publication of the Civil Reform Bill 2025 marks a pivotal moment, with proposed changes to jurisdictional limits and civil procedure likely to reshape the litigation landscape. If implemented, these reforms, alongside the scheduled review of the Guidelines and benchmarking exercises, could deliver a more balanced and predictable system for all stakeholders.
If you would like further advice or information on any of the topics discussed above, please contact our Litigation team at CKT.