Personal Injuries lump sum compensation-lump sums system criticised.
An economist speaking in Dublin recently criticised the merits
of lump sum settlements as opposed to structured settlements.
The speaker Colm McCarty called for a debate on a change from the current system
where a victim of an accident gets a lump sum for their injuries and where relevant a sum to cover future loss and expenses and called for a debate on the concept of a structured settlement.
Structured settlements are common in a number of European countries and involve the victim getting an initial payment followed by an annuity.
Whilst a debate is to be welcomed on the subject the question may victims might ask would be who would manage their ‘lump sums’?
In light of recent economic conditions insurance companies and financial advisers would have some distance to go to win the trust of victims that their investment skills could meet this task.
The challenge for insurance companies will be the fact that cases could not be ‘closed off’ for many years leading to additional administration costs into the future.
The debate is an interesting one and one certainly set to run for some time.
In the meantime it goes without saying that prudent investment of settlement monies is essential for all victims of accidents in order to ensure that the resources are available to fund potential future expenses.
Paul Tracey
November 2009
Untraced driver causes serious personal injuries -€1 Million award approved by court
A lorry driver who was seriously injured when an unidentified driver drove into his path, causing him to swerve and overturn, has secured more than €1 million in settlement of his High Court action.
The driver, brought the case against the Motor Insurance Bureau of Ireland as the driver of the other vehicle involved had not been traced.
The settlement was approved this week in the High Court by Mr Justice John Quirke.
In his claim, it was alleged that the victim suffered very severe head injuries and had also sustained spinal and hip injuries as a result of the accident in Finglas, on January 20th, 2000. Dublin fire brigade had to extricate him from his vehicle.
The important role played by the Motor Insurance Bureau in compensating victims of road traffic accidents even where the careless driver is untraced or leaves the scene of an accident is to be noted from this case.
‘It is important to remember that victims of road traffic accidents , be they pedestrians, passengers, cyclist or drivers where the motorist causing the accident is untraced or leaves the scene of an accident may still be entitled to compensation.’
If you are the victim of a road traffic accident and require assistance please feel free to contact our offices without obligation.
Paul Tracey
Solicitor
24/07/2009
